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Market Close: Mar 04 Up

Fueling Strategy: Please keep tanks topped tonight, Friday prices will jump UP 3 cents – Be Safe
NYMEX Crude    $  63.83 UP $2.5500
NYMEX ULSD     $1.8960 UP $0.0603
NYMEX Gas       $1.9979 UP $0.0461
NEWS
Oil prices rose more than $1 per barrel on Thursday after Saudi Energy Minister Prince Abdulaziz bin Salman urged caution and vigilance at the beginning of a meeting of OPEC ministers and their allies about the future of supply cuts. Brent crude futures were up $1.11, or 1.7%, at $65.18 a barrel while U.S. West Texas Intermediate (WTI) crude rose $2.55, to $63.83.

Ministers from OPEC members and their allies started a meeting to discuss the future of an oil output cut at 1300 GMT. Analysts and traders say a four-month price rally from below $40 a barrel is now out of step with demand and that physical sales are not expected to match supply until later in 2021. But with prices above $60, some analysts have predicted OPEC+ producers will increase output by about 500,000 barrels per day (bpd) and expect Saudi Arabia to at least partially end its voluntary reduction of 1 million bpd. Three OPEC+ sources on Wednesday said some members believe that output should remain unchanged and that it was not immediately clear whether Saudi Arabia would end its voluntary cuts or extend them. “The market … can take back at least 500,000 bpd (excluding Saudi’s extra cuts) from April and even more in following months, in line with the recovery we expect in oil demand,” said Rystad’s head of oil markets, Bjornar Tonhaugen. “Some mild negative price reaction will take place, though, if the decision is to increase output. Such a development would prevent some steep stock draws that had been priced in for a while for coming months.”

In the United States, despite a record surge of more than 21 million barrels in crude oil stockpiles last week, gasoline stocks fell by the most in 30 years as refining plunged to a record low because of the Texas freeze.

Giving a floor to prices, Yemen’s Houthi forces said on Thursday that they had fired a missile at a Saudi Aramco facility in Saudi Arabia’s Red Sea city of Jeddah. There was no immediate confirmation from Saudi authorities.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
“Serving the trucking industry since 1992”
Office: 479-846-2761
Cell: 479-790-5581
www.FuelManagerServices.com
www.owneroperatoradvisoryservice.com
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”
Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.