Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Prices will go down less than a penny Friday~Be Safe

NMEX Crude      $ 77.36 UP $2.2720

NYMEX ULSD     $2.7954 UP $0.1136

NYMEX Gas       $2.2644 UP $0.0549

NEWS

March WTI crude oil on Thursday closed up +2.27 (+3.02%), and Mar RBOB gasoline closed up +5.21 (+2.33%). Crude oil and gasoline prices on Thursday rallied to 1-3/4 month highs and closed sharply higher.  Signs of strength in U.S. energy demand support crude prices after Thursday’s report showed that U.S. Q4 GDP grew more than expected.  Also, a drone attack damaged a Russian refinery on Russia’s Black Sea coast, which risks reducing Russian crude exports and global oil supplies.  In addition, crude has carryover support from Wednesday’s weekly EIA report that showed U.S. crude inventories fell more than -9.0 million bbl. 

Thursday’s U.S. economic news was mainly better than expected, a positive factor for energy demand and crude prices.  U.S. Q4 GDP grew at a +3.3% (y/y annualized) pace, stronger than expectations of +2.0%.  Also, Dec capital goods new orders ex-aircraft and parts, a proxy for capital spending, rose +0.3% m/m, stronger than expectations of +0.1% m/m.  In addition, Dec new home sales rose +8.0% m/m to 664,000, stronger than expectations of 649,000.  On the negative side, weekly initial unemployment claims rose +25,000 to 214,000, showing a weaker labor market than expectations of 200,000.

Crude prices found support Thursday after a Ukranian drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  In recent weeks, several Russian oil processing and storage facilities have been targeted and damaged by Ukrainian drone attacks, increasing the risks of reducing Russian crude exports.

Escalating geopolitical tensions in the Middle East support crude prices.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  Attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

A decline in Russian crude oil exports is supportive of crude oil prices.  Tanker-tracking data from Vortexa monitored by Bloomberg shows the four-week average of refined fuel shipments from Russia fell to 2.62 million bpd in the four weeks to Jan 21, down -70,000 bpd from the prior week.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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!

“Celebrating 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford