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Market Close: Jan 13 Up

Fueling Strategy: Please keep tanks topped out tonight, Friday prices will jump UP 3 cents then Saturday prices will go UP another 1.5 cents ~ Be Safe
NMEX Crude      $ 82.12  DN $.5200
NYMEX ULSD     $2.6085 UP $.0143
NYMEX Gas       $2.3841 DN $.0067
NEWS
Oil futures ended lower Thursday, with a significant rise in U.S. gasoline stockpiles last week raising concern over the omicron coronavirus variant’s impact on demand for fuel, even as domestic crude supplies stand at their lowest since 2018. Prices fell despite continued weakness in the U.S. dollar, “signaling that the move higher in oil futures over the past month may have once again gotten too far ahead of the physical market reality,” said Troy Vincent, senior market analyst at DTN. Hopes of “omicron burning through the population quickly has caused many to overlook the impact the current global wave of the virus is having on demand,” he told MarketWatch. EIA “emphasized just how hard it is hitting gasoline demand despite the lack of new U.S. lock downs.” The EIA reported a larger-than-expected rise in gasoline supplies of 8 million barrels and a 2.5 million-barrel increase in distillate inventories.

West Texas Intermediate crude for February delivery fell 52 cents, or 0.6%, to settle at $82.12 a barrel on the New York Mercantile Exchange. March Brent crude, the global benchmark, lost 20 cents, or 0.2%, at $84.47 a barrel on ICE Futures Europe. WTI and Brent both finished Wednesday at their highest since Nov. 9. Among the petroleum products traded on Nymex, February gasoline fell 0.3% to $2.384 a gallon, while February heating oil edged up by nearly 0.6% to $2.609 a gallon.

Crude got a boost Wednesday after the EIA reported a larger-than-expected 4.6 million-barrel fall in U.S. crude supplies for the week ended Jan. 7. Supplies, excluding those in the Strategic Petroleum Reserve, stood at 413.3 million barrels, the lowest since 2018. “Although the fall in crude inventory was expected, rising gasoline stockpiles helped by further [SPR] releases by the Biden administration have helped level off prices,” said Louise Dickson, senior market analyst at Rystad Energy. “It remains to be seen whether this balance will last or if more bullish sentiment will return as the economy rebounds in the coming weeks.” “However, downside risk remains as the demand for refined products continues to slump, keeping prices in check,” she said, in a note. WTI remains up more than 9% since the start of the new year, while Brent is up more than 8% over the same stretch.

A record number of patients are currently in U.S. hospitals with COVID-19, but scientists see signs that the infection wave driven by the highly contagious omicron variant may be nearing a peak.

Dickson said Brent’s march toward $85 a barrel reflected optimism over Europe’s economic outlook and prospects for oil consumption, boosted by the by the lifting of restrictions to slow the spread of omicron by some countries in Europe.

Have a Great Day,

Loren R Bailey, President
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As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

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Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.