Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Prices are down 6 cents today BUT will continue to drop another 3 cents Saturday & 1.5 cents Sunday ~ Please Be Safe
NMEX Crude $ 80.63 DN $.4400
NYMEX ULSD $2.6534 DN $.0154
NYMEX Gas $2.7398 UP $.0127
NEWS
May WTI crude oil closed down -0.44, and May RBOB gasoline closed up +1.27. Crude oil and gasoline prices this morning are mixed. Energy prices are under pressure from the rally in the dollar index to a 5-week high. Losses in crude are limited as recent Ukranian drone attacks on Russian oil facilities have reduced Russia’s average oil refining rate to a 10-month low.
Crude has support from the recent Ukrainian drone attacks on Russian refineries that damaged several Russian oil processing facilities, limiting Russian fuel export prospects. Bloomberg calculations show Russian refiners processed 5.03 million bpd of crude from March 14 to March 20, down -400,000 bpd from the average for the first 13 days of March and the lowest in 10 months. JPMorgan Chase said it sees 900,000 bpd of Russian refinery capacity that could be offline “for several weeks if not months” from the attacks, adding $4 a barrel of risk premium to oil prices.
The recent 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.
The International Energy Agency (IEA) last Thursday forecasted that the global oil markets will be in a deficit through the end of 2024 if OPEC+ maintains its current production cuts, although the balance would turn into a surplus if OPEC+ starts pumping more oil. OPEC+ will meet on June 1 to decide on production levels for the second half of 2024. The IEA also raised its forecast for global crude oil demand growth in 2024 by 110,000 bpd to 1.3 million bpd due to a stronger US economic outlook and the increased fuel needed for ships to take longer routes to avoid Houthi attacks in the Red Sea.
Have a Great Day!
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
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JUN 06 VACATION LEAVE AFTER LUNCH
JUN 10 RETURN/ARRIVE 1300
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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!
“Celebrating 31-years of Service Excellence”
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