Market Close: July 31 UP, Diesel UP $.0787, Gas UP $.0949
Aug 1st, 2024 by loren
Fueling Strategy: Prices are down 4 cents today, Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT” ahead of Friday price JUMP UP 8 Cents ~ Be Safe Today
NYEX Crude $ 77.91 UP $3.1800
NYMEX ULSD $2.4155 UP $0.0787
NYMEX Gas $2.4820 UP $0.0949
NEWS
Sep WTI crude oil on Wednesday closed up +3.18 (+4.26%), and Sep RBOB gasoline closed up +9.82 (+4.19%).Crude oil prices Wednesday rallied sharply.
Wednesday’s fall in the dollar index to a 1-1/2 week low was bullish for energy prices. Crude is also climbing on increased geopolitical tensions in the Middle East that could lead to a disruption of the region’s crude supplies after Israel launched an airstrike in Iran that killed a Hamas leader and an airstrike in Beirut that killed a Hezbollah leader. Iranian Supreme leader Ayatollah Ali Khamenei said he had a “duty to seek vengeance” and that Israel should prepare for “severe punishment.”
Crude prices extended their gains after weekly EIA crude inventories fell more than expected to a 5-3/4 month low. Wednesday’s global economic news mixed for energy demand and crude prices. On the positive side, US Jun pending home sales rose +4.8% m/m, stronger than expectations of +1.5% m/m and the biggest increase in 6 months.
Also, Japan Jun retail sales rose +0.6% m/m and +3.7% y/y, stronger than expectations of +0.2% m/m and +3.2% y/y. On the negative side, the US Jul ADP employment change rose +122,000, weaker than expectations of +150,000 and the smallest increase in 6 months. Also, the BOJ cut its 2024 Japan GDP forecast to 0.6% from 0.8% Crude oil prices have underlying support from the Hamas-Israel conflict. Israel’s military continues to conduct operations in Gaza, and there is the continued risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.
Meanwhile, ongoing 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.
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