Fueling Strategy: Please “FUEL AS NEEDED” today/tonight ~ Be Safe
NMEX Crude $ 82.72 UP $1.6800
NYMEX ULSD $2.7882 UP $0.0612
NYMEX Gas $2.7573 UP $0.0365
NEWS
April WTI crude oil on Monday closed up +1.68 (+2.07%), and Apr RBOB gasoline closed up +3.86 (+1.43%). Crude oil and gasoline prices on Monday moved higher, with crude posting a 4-1/2 month high and gasoline posting a 5-month high. Signs of strength in Chinese crude demand pushed prices higher Monday after China processed a record volume of oil in the first two months of this year. Also, Ukrainian drone attacks on Russian refineries over the weekend damaged several Russian oil processing facilities, limiting Russian fuel export prospects. Gunover Group estimates about 600,000 bpd of Russian oil-refining capacity has been knocked out by the Ukrainian drone strikes.
The strength of Chinese crude oil demand is bullish for prices. Monday’s government data showed that China processed a record 118.76 MMT of crude in January and February, up +3% from the same time last year. Also, Chinese fuel demand jumped, with expressway passenger volumes 54% higher than 2019 levels, while airlines saw 19% more people than the pre-pandemic peak.
Monday’s global economic news was supportive of energy demand and crude prices. The US Mar NAHB housing market index unexpectedly rose +3 to an 8-month high of 51, stronger than expectations of no change at 48. Also, China’s industrial production rose +7.0% year-to-date y/y, stronger than expectations of +5.2% year-to-date y/y.
Monday’s rise in the crude oil crack spread to a 6-month high is bullish for crude prices. The stronger crack spread encourages refiners to boost their crude oil purchases to refine into gasoline and distillates.
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!
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