Fueling Strategy: Please fill as needed today/tonight – Be Safe Today
NYMEX Crude $ 48.22 DN $.5600
NY Harbor ULSD $1.5141 UP $.0056
NYMEX Gasoline $1.6113 UP $.0124
NEWS
Oil prices settled at their lowest level in nearly a week, as another rise in active U.S. oil rigs renewed concerns over domestic production and some analysts worried that a change to the G-20 policy statement may impact global trade.
April West Texas Intermediate crude shed 56 cents, or 1.2%, to finish at $48.22 a barrel on the New York Mercantile Exchange, ahead of the contract’s expiration at Tuesday’s settlement. May Brent crude gave up 14 cents, or 0.3%, to $51.62 a barrel on the ICE Futures exchange in London. WTI crude has “found itself vulnerable to heavy losses…as the rising drilling activity in the U.S. reinforced the oversupply fears,” said Lukman Otunuga, research analyst at FXTM, in a note.
“Sentiment remains bearish towards oil and the fading optimism over the effectiveness of [the Organization of the Petroleum Exporting Countries’] supply cut deal could encourage sellers to attack prices further,” he said. “Although OPEC’s inability to balance the oil markets in the first half of 2017 has sparked speculations of the organization extending its six-month contract, the rise of U.S. shale and lingering concerns of some members not fully following the compliance in cutting production could create headwinds.”
The number of active U.S. rigs drilling for oil rose for a ninth straight week—up 14 to 631 last week, according to data from Baker Hughes released Friday.
Meanwhile, news that financial officials at the Group of 20 industrialized and developing nations meeting dropped a disavowal of protectionism, at the request of U.S. Treasury Secretary Mnuchin, from a closely watched policy statement also weighed on oil prices. “We have already seen how worries of a border-adjustment tax moved the crude forward curve in the first few weeks following [President Donald] Trump’s inauguration,” said Troy Vincent, oil analyst at ClipperData. “A major threat to the market, whether a BAT or simple tariffs are enforced, could arise from diminished oil and product demand as protectionist policies are sure to weigh on economic growth.”