Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, prices are down $.01 but will drop 3 cents Thursday~Be Safe
NMEX Crude $ 75.85 DN $1.9700
NYMEX ULSD $2.8014 UP $0.0014
NYMEX Gas $2.1833 DN $0.0774
NEWS
March WTI crude oil on Wednesday closed down -1.97 (-2.53%), and Mar RBOB gasoline closed down -6.56 (-2.86%). Crude oil and gasoline prices on Wednesday closed moderately lower. Wednesday’s weaker-than-expected global economic news was negative for energy demand and crude prices. Losses in crude accelerated after Wednesday’s weekly EIA report showed crude inventories unexpectedly rose and gasoline stockpiles rose to a 3-year high. The weaker dollar and ongoing geopolitical risks in the Middle East were supportive factors for crude Wednesday.
Wednesday’s weaker-than-expected global economic news was bearish for energy demand and crude prices. The U.S. Jan ADP employment change rose +107,000, weaker than expectations of +150,000. Also, the U.S. Jan MNI Chicago PMI unexpectedly fell -1.2 to 46.0, weaker than expectations of an increase to 48.0. In addition, the China Jan manufacturing PMI rose +0.2 to 49.2, weaker than expectations of 49.3. Finally, German Dec retail sales unexpectedly fell -1.6% m/m, weaker than expectations of a +0.6% m/m increase.
Geopolitical tensions in the Middle East continue to support crude prices. On Sunday, three U.S. servicemen were killed after Iranian-backed militants launched a drone attack on a U.S. base in Jordan near the Syrian border. Last Friday, Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck an oil tanker with a missile that was carrying fuel in the Gulf of Aden. 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.
Have a Great Day!
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
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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!
“Celebrating 31-years of Service Excellence”
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