Fueling Strategy: Please fill as needed tonight – Be Safe

NYMEX Crude $ 49.37 UP $1.3900
NY Harbor ULSD $1.5274 UP $0.0457
NYMEX Gasoline $1.5827 UP $0.0774

NEWS
Oil futures finished Monday at their highest level in more than a week as global stock markets soared as opinion polls indicated the U.K. was more likely to remain in the European Union.

Natural-gas futures, meanwhile, rallied to their highest level since September as warmer weather forecasts for the next several days pointed to higher demand for the commodity. July West Texas Intermediate tacked on $1.39, or 2.9%, to settle at $49.37 a barrel on the New York Mercantile Exchange. The July contract expires at Tuesday’s settlement and August will become the front month for WTI. August Brent crude rose $1.48, or 3%, to $50.65 a barrel on London’s ICE Futures exchange. Both crude contracts settled at their highest levels since June 9.

The U.K. referendum, also known as the Brexit vote that will decide whether the nation leaves the EU, represents “a big threat for [the] global economy,” Naeem Aslam, chief market analyst at ThinkForex told MarketWatch. “All bets will be off if Brexit becomes reality and we could be craving for [energy] demand.” “This is a scenario which could potentially be fivefold worse than Lehman Brothers. Therefore, any relief on this front is uplifting the sentiment among trades,” he said. Opinion polls published over the weekend suggest that the U.K. was more likely to vote to remain in the EU in Thursday’s referendum. A poll by Survation published in the Mail on Sunday newspaper showed 45% favoring remaining an EU member and 42% in favor of exiting the European trading bloc. A poll-of-polls, averaging the past six polls in the U.K. vote, has returned to 50/50, while the bookmakers’ odds for Brexit fell sharply from last week.

European equities gained sharply Monday as the British pound surged nearly 2% against the dollar. That followed gains in Japan and Hong Kong. U.S. stocks were rallying. Gains in oil prices are in line with lower perceived chances of Brexit—which is good for equity markets—as well as a weaker dollar, analysts at JBC Energy said.

Analysts say while a British exit from the bloc may not have a direct effect on oil, the market could suffer collateral damage. The ensuing turmoil could worsen sentiment for riskier assets such as commodities. Oil could also take a hit from a rising dollar, which analysts expect to strengthen if the U.K. votes to leave the EU. The bullish outlook on the referendum’s outcome over the weekend has helped crude prices to defy negative factors such as the resumption of oil production in Canada after wildfires and a third-straight weekly increase in the number of U.S. rigs drilling for oil.

Oil prices have also been propelled by a weakening dollar. The ICE U.S. Dollar Index traded 0.6% lower. “The weakening dollar incentivises demand from all producers who use a currency other than the dollar, which in turn boosts prices for crude,” said Daniel Holder, commodity analyst at Schneider Electric.