Fueling Strategy: Please fill as needed tonight – Be Safe Today!
NYMEX Crude $ 49.17 UP $.1600
NY Harbor ULSD $1.5088 UP $.0099
NYMEX Gasoline $1.6346 UP $.0193
NEWS
Oil futures finished higher Thursday, as support from weekly declines in U.S. crude supplies and output offset earlier pressure from the Organization of the Petroleum Exporting Countries’ failure to reach a pact to cap member production.
On the New York Mercantile Exchange, July West Texas Intermediate crude rose by 16 cents, or 0.3%, to settle at $49.17 a barrel. Prices marked their first gain in five sessions. WTI touched lows under $48 after the meeting of OPEC members in Vienna failed to result in a deal to limit crude production. But following the U.S. government data revealed a weekly decline in domestic crude stockpiles and production, prices pared their losses and turned higher. August Brent crude on London’s ICE Futures exchange settled up 32 cents, or 0.6%, at $50.04 a barrel. That was the best finish for Brent prices since November.
Talk of a potential production ceiling late Wednesday had raised hope that the group of major oil producers would take action to help alleviate the continuing glut of global crude. But OPEC officials said in a news release that the market is “moving through the balancing process,” with prices having climbed by more than 80% since December and oil supplies in major industrialized countries having moderated. “There was never a chance that OPEC would cut production today, meaning there are no real surprises from the outcome of this meeting resulting in OPEC failing to reach an output deal,” said Jameel Ahmad, chief market analyst at FXTM. But “to put it quite simply, there was very little need for OPEC to change their strategy,” he said in a note. “It is important to point out that the price of oil has rebounded substantially since the milestone lows below $30 at the beginning of 2016.” Much of that price rebound has to do with declines in global oil production and supply levels, as the low prices for crude prompted companies in the industry to cut spending.
U.S. data from the Energy Information Administration appeared to back up OPEC’s notion of a market rebalance. U.S. crude supplies fell by 1.4 million barrels for the week ended May 27, a report from the EIA showed Thursday. The American Petroleum Institute late Wednesday had reported a 2.4 million-barrel rise, while analysts polled by S&P Global Platts expected a 3.1 million-barrel decline. Total domestic production also fell by 32,000 barrels a day to 8.735 million barrels a day, the EIA said. “There were [supply] drawdowns across the board, giving this set of numbers a bullish tilt,” said Anthony Starkey, manager of energy analysis at Platts Analytics. Gasoline supplies were down 1.5 million barrels, while distillate stockpiles fell 1.3 million barrels last week, according to the EIA.