Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Prices are down 7 cents, Saturday look for another penny drop ~ Please Be Safe

NMEX Crude      $ 77.99 DN $.9600

NYMEX ULSD     $2.4422 DN $.0009

NYMEX Gas       $2.5500 DN $.0465

NEWS

June WTI crude oil on Friday closed down -0.96, and June RBOB gasoline closed down -4.65. Crude oil and gasoline prices Friday were under pressure the entire day and posted 1-1/2 month lows.   Improved prospects for a cease-fire in the Israeli-Hamas war have curbed geopolitical risks in the Middle East and undercut crude prices.  Also, US energy demand concerns are negative for crude due to Friday’s weaker-than-expected economic reports on Apr nonfarm payrolls and the Apr ISM services index.  Limiting losses in crude was Friday’s fall in the dollar index, which fell to a 3-week low.

Easing geopolitical tensions reduces the risk premium for crude and is bearish for prices.  Hamas said on Friday that it was studying the current cease-fire proposal and plans to send a delegation to Egypt to continue negotiations.  The improved cease-fire prospects reduce the chances of an escalation of the Israel-Hamas conflict that could jeopardize crude shipments from the Middle East.

Friday’s weaker-than-expected US economic news is bearish for energy demand and crude prices.  Apr nonfarm payrolls rose +175,000, below expectations of +240,000 and the smallest increase in 6 months.  Also, the  Apr ISM services index unexpectedly fell -2.0 to 49.4, weaker than expectations of a rise to 52.0 and the steepest pace of contraction in 16 months.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Friday prices will drop 7 cents ~ Please Be Safe

NMEX Crude      $ 78.95 DN $.0500

NYMEX ULSD     $2.4453 DN $.0066

NYMEX Gas       $2.5924 UP $.0149

NEWS

June WTI crude oil on Thursday closed down -0.05 , and June RBOB gasoline closed +1.91.

Crude oil and gasoline prices settled mixed on Thursday, with crude posting a new 1-1/2 month low.   Crude prices are under pressure due to the potential for a cease-fire between Israel and Hama, which eases concerns about the escalation of the conflict and possible disruptions to Middle East crude supplies.  Crude also has a negative carryover from Wednesday, when weekly EIA crude inventories unexpectedly rose to a 10-month high.  However, crude recovered from its worst levels Thursday, and gasoline pushed into positive territory after the dollar index (DXY00) dropped to a 2-1/2 week low. Easing geopolitical tensions reduces the risk premium for crude and is bearish for prices.  The prospects for a cease-fire between Hama and Israel were bolstered today after Hamas said it was studying the current cease-fire proposal with a “positive spirit.”

Crude garnered some support Thursday after the Organization for Economic Cooperation and Development (OECD) raised its 2024 global growth forecast to +3.1% from +2.9% in February, a positive development for energy demand.

A decrease in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -17% w/w to 62.83 million bbl as of April 26.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Thursday prices will drop 1.5 cent ~ Please Be Safe

NMEX Crude      $ 79.00 DN $2.9300

NYMEX ULSD     $2.4595 DN $0.0681

NYMEX Gas       $2.5774 DN $0.1138

NEWS

June WTI crude oil on Wednesday closed down -2.93, and June RBOB gasoline closed down -11.38. Crude and gasoline prices Wednesday tumbled to 1-1/2 month lows and closed sharply lower.   Crude prices are under pressure due to the potential for a cease-fire between Israel and Hama, which eases concerns about the escalation of the conflict and possible disruptions to Middle East crude supplies.  Losses in crude accelerated Wednesday after weekly EIA crude inventories unexpectedly rose to a 10-month high.

Wednesday’s US economic news was mixed for energy demand and crude prices.  On the negative side, Mar JOLTS job openings fell -325,000 to a 3-year low of 8.488 million, showing a weaker labor market than expectations of 8.680 million.  Also, the Apr ISM manufacturing index fell -1.1 to 49.2, weaker than expectations of 50.0.  In addition, Mar construction spending unexpectedly fell -0.2% m/m, weaker than expectations of a +0.3 % m/m increase.  On the positive side, the Apr ADP employment change rose +192,000, stronger than expectations of +183,000.

A decrease in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -17% w/w to 62.83 million bbl as of April 26.

Reduced crude demand in India, the world’s third-largest crude consumer, is negative for oil prices after India’s March oil demand fell -0.6% y/y to 21.09 MMT.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight ~ Be Safe

NMEX Crude      $ 82.63 DN $1.2200

NYMEX ULSD     $2.5368 DN $0.0114

NYMEX Gas       $2.7308 DN $0.0131

NEWS

June WTI crude oil on Monday closed down -1.22, and June RBOB gasoline closed down -1.31. Crude and gasoline prices posted moderate losses on Monday.   Crude prices Monday were under pressure on an easing of Middle East tensions.   The prospects for a cease-fire in the Hamas-Israel war have improved, undercutting the geopolitical risk premium in crude prices.   Losses in crude were limited due to a weaker dollar and a rally in stocks, which bolsters optimism in the economic outlook that is supportive of energy demand. The prospects for a cease-fire in the Hamas-Israel war have improved, easing geopolitical risks and weighing on crude prices.  

The New York Times reported Monday that Israel reduced the number of hostages that it wants Hamas to free during the first phase of a new truce in Gaza to 33 from 40, according to three Israeli officials.  The shift has raised expectations that Hamas and Israel might be edging closer to a cease-fire.

Strength in the crude crack spread is bullish for crude prices.  The crack spread on Monday rose to a 1-1/2 week high, encouraging refiners to boost their crude purchases and refine the crude into gasoline and distillates.

A decrease in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -17% w/w to 62.83 million bbl as of April 26. Reduced crude demand in India, the world’s third-largest crude consumer, is negative for oil prices after India’s March oil demand fell -0.6% y/y to 21.09 MMT.

Crude prices have underlying support from the Israel-Hamas war and concern that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  Also, attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

Crude has support from the recent Ukrainian drone attacks on Russian refineries that damaged several Russian oil processing facilities, limiting Russia’s fuel exporting capacity.  Russia’s fuel exports in the week to April 21 fell by -500,000 bpd from the prior week to 3.45 million bpd.  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.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight ~ Be Safe

NMEX Crude      $ 83.85 UP $.2800

NYMEX ULSD     $2.5586 DN $.0018

NYMEX Gas       $2.7429 UP $.0096

NEWS

HOUSTON, April 26 (Reuters) – Oil prices settled higher on Friday, garnering support from tensions in the Middle East, but a strong dollar and U.S. inflation data quashed hopes that the Federal Reserve would cut interest rates soon, giving prices a ceiling. Brent crude futures settled up 49 cents, or 0.55%, to $89.50 a barrel. U.S. West Texas Intermediate crude futures settled up 28 cents, or 0.34%, to $83.85 a barrel. Supply concerns supported prices as tensions continue in the Middle East.

Benjamin Netanyahu, Israel’s prime minister, said any rulings by the International Criminal Court, which is investigating Hamas’ Oct. 7 attacks on Israel and Israel’s military assault on Gaza, would not affect Israel’s actions but would “set a dangerous precedent.” As tensions escalate, Israel’s military said on Friday that its air force struck in Lebanon’s West Beqaa District and killed a militant who advanced attacks against Israel. Israel stepped up air strikes on Rafah on Thursday after saying it would evacuate civilians from city in southern Gaza and launch an all-out assault despite allies’ warnings that doing so could cause mass casualties. “Israel is not afraid to come and support themselves on their own if they have to, people are watching to see what happens between Netanyahu and Biden,” said Tim Snyder, chief economist at Matador Economics. “The geopolitical element is not over, the proxy battles going on right now will continue,” and this is still providing support and helping to offset the negative pressure from the inflationary data, Snyder added.

Meanwhile, macroeconomic pressures capped gains after data released on Friday showed growing inflation. In the 12 months through March, U.S. inflation rose 2.7% after an advance of 2.5% in February. Last month’s increase was broadly in line with economists’ expectations. The Fed has a 2% inflation target. The U.S. central bank is expected to leave rates unchanged at its policy meeting next week. “The economic data this morning was enough for market participants to conclude that the Fed is not going to be forthcoming with interest rate cuts any time soon,” said John Kilduff, partner with Again Capital LLC. “Geopolitical jitters in the market are what is keeping us aloft. Those two competing forces should keep us in check,” Kilduff added.

U.S. Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. GDP growth for the first quarter could be revised higher, and inflation will ease after a clutch of “peculiar” factors held the economy to its weakest showing in nearly two years. U.S. economic growth was likely stronger than suggested by the weaker quarterly data, Yellen said. Oil prices have flip-flopped since Yellen’s comments and the release of the inflation data on Friday.

Meanwhile, the dollar soared to a fresh 34-year high against the yen on Friday, bolstered in part by the U.S. inflation data. “Dollar strength is helping to exert negative pressure today,” Kilduff said.

Elsewhere, OPEC Secretary General Haitham Al Ghais said in an op-ed article that the end of oil is not in sight, as the pace of energy demand growth means that alternatives cannot replace it at the needed scale, and the focus should be on cutting emissions not oil use.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Thursday prices will drop 2 cents ~ Please Be Safe

NMEX Crude      $ 83.78 UP $.9700

NYMEX ULSD     $2.5662 UP $.0065

NYMEX Gas       $2.7398 UP $.0311

NEWS – Key Points

• Oil prices could average $102 per barrel if a major conflict in the Middle East breaks out involving one or more oil producers, according to the World Bank.
• An oil price shock of this magnitude could stall the fight against global inflation almost entirely, according to the bank.
• “A key force for disinflation — falling commodity prices — has essentially hit a wall,” the World Bank’s chief economist said.

The outbreak of a major conflict in the Middle East could trigger an energy shock that pushes oil prices above $100 a barrel, fuels inflation and results in higher interest rates for longer, the World Bank warned Thursday. Tensions in the Middle East reached a boiling point earlier this month as Israel and OPEC member Iran appeared on the brink of war, raising fears that crude oil supplies could be disrupted as a consequence.

The governments in Jerusalem and Tehran appear to have decided against escalation after exchanging direct strikes on each other’s territory for the first time. Oil prices have pulled back nearly 4% from recent highs as investors have discounted the probability of a wider war in the region. The World Bank, however, cautioned that the situation remains uncertain. “The world is at a vulnerable moment: A major energy shock could undermine much of the progress in reducing inflation over the past two years,” said World Bank Chief Economist Indermit Gill. Oil prices could average $102 per barrel if a conflict involving one or more oil producers in the Middle East results in a supply disruption of 3 million barrels per day, according to the World Bank’s latest commodity markets outlook report. An price shock of this magnitude could stall the fight against inflation almost entirely, according to the report.

Global inflation cooled by 2% between 2022 and 2023 largely due to commodity prices plunging nearly 40%, according to the World Bank. Commodity prices are now plateauing with the global financial institution forecasting modest declines of 3% this year and 4% in 2025. “Global inflation remains undefeated,” Gill said. “A key force for disinflation — falling commodity prices — has essentially hit a wall. That means interest rates could remain higher than currently expected this year and next.” While the conflict in the Middle East presents upside pricing risks, the world could see relief if OPEC+ decides to start unwinding its production cuts this year. Oil prices would fall to an average $81 a barrel if the cartel brings 1 million barrels per day back onto the market in the second half of the year, according to the World Bank.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT, Thursday prices will jump UP another 2 Cents, Prices will Drop Friday 2 Cents ~ Be Safe

NMEX Crude      $ 82.94 DN $.4200

NYMEX ULSD     $2.5645 DN $.0215

NYMEX Gas       $2.7112 UP $.0101

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight ~ Be Safe

NMEX Crude      $ 82.14 DN $.0800

NYMEX ULSD     $2.5756 UP $.0250

NYMEX Gas       $2.6679 DN $.0155

NEWS

May WTI crude oil on Monday closed down -0.08, and May RBOB gasoline closed down  -2.50. Crude and gasoline prices on Monday posted moderate losses, with gasoline falling to a 6-week low.  The main bearish factor for crude prices Monday was an easing of Israel-Iran tensions after it appeared that Iran would not respond following Israel’s retaliatory strike last Friday. In addition, the outlook for increased US crude production is bearish for prices after last Friday’s weekly report from Baker Hughes showed that active US oil rigs in the week ended April 19 rose by +5 rigs to a 7-month high of 511 rigs. The weakness in the crude crack spread is bearish for oil prices as the crack spread on Monday fell to a 2-month low.  The weaker crack spread discourages refiners from purchasing crude and refining it into gasoline and distillates. Reduced crude demand in India, the world’s third-largest crude consumer, is negative for oil prices after India’s March oil demand fell -0.6% y/y to 21.09 MMT.

Crude has support from the recent Ukrainian drone attacks on Russian refineries that damaged several Russian oil processing facilities, limiting Russia’s fuel exporting capacity.  Russia’s fuel exports in the week to April 7 fell by -450,000 bpd from the prior week to 3.39 million bpd.  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.

Crude prices have support from April 3 when OPEC+, at its monthly meeting, did not recommend any changes to their existing crude output cuts, which kept about 2 million bpd of production cuts in place until the end of June.  However, OPEC crude production in March rose +10,000 bpd to 26.860 million bpd, a bearish factor for oil prices as Iraq and UAE continue to pump above their production quotas. A decrease in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -18% w/w to 75.45 million bbl as of April 19.

Crude prices have underlying support from the Israel-Hamas war and concern that the war might spread to Hezbollah in Lebanon.  Also, attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies. Last Wednesday’s EIA report showed that (1) US crude oil inventories as of April 12 were -1.3% below the seasonal 5-year average, (2) gasoline inventories were -3.7% below the seasonal 5-year average, and (3) distillate inventories were -7.4% below the 5-year seasonal average.  US crude oil production in the week ending April 12 was unchanged w/w at 13.1 million bpd, below the recent record high of 13.3 million bpd.

Baker Hughes reported last Friday that active US oil rigs in the week ended April 19 rose by +5 rigs to a 7-month high of 511 rigs, moderately above the 2-year low of 494 rigs posted on November 10.  The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Prices are down 7 cents then Saturday look for another 4 cent drop~ Please Be Safe

NMEX Crude      $ 81.73 UP $.4100

NYMEX ULSD     $2.5531 UP $.0190

NYMEX Gas       $2.6810 DN $.0034

NEWS

May WTI crude oil on Friday closed up +0.41, and May RBOB gasoline closed down -0.34. Crude and gasoline prices on Friday settled mixed.  Crude prices spiked more than +$3 a barrel in overnight trade on escalation of Middle East tensions after US officials said Israel launched air strikes at military targets in Iran and Syria.   However, crude fell back from its best levels, and gasoline fell into negative territory after Iranian media appeared to downplay the effect of the Israeli strikes, lowering the geopolitical risk premium for crude oil.  A stronger dollar Friday was also bearish for energy prices.  

Reduced crude demand in India, the world’s third-largest crude consumer, is negative for oil prices after India’s March oil demand fell -0.6% y/y to 21.09 MMT. Crude has support from the recent Ukrainian drone attacks on Russian refineries that damaged several Russian oil processing facilities, limiting Russia’s fuel exporting capacity.  Russia’s fuel exports in the week to April 7 fell by -450,000 bpd from the prior week to 3.39 million bpd.  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.

Crude prices have support from April 3 when OPEC+, at its monthly meeting, did not recommend any changes to their existing crude output cuts, which kept about 2 million bpd of production cuts in place until the end of June.  However, OPEC crude production in March rose +10,000 bpd to 26.860 million bpd, a bearish factor for oil prices as Iraq and UAE continue to pump above their production quotas.  

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Friday prices will drop 7 cents then Saturday look for another 4 cent drop~ Please Be Safe

NMEX Crude      $ 82.11 UP $.0400

NYMEX ULSD     $2.5419 DN $.0390

NYMEX Gas       $2.6842 DN $.0150

NEWS

May WTI crude oil on Thursday closed up +0.04, and May RBOB gasoline closed down -1.50. Crude and gasoline prices on Thursday settled mixed, with crude rebounding from a 3-week low and gasoline falling to a 2-week low.  A stronger dollar Thursday weighed on energy prices.  Crude also has a negative carryover from Wednesday, when the EIA reported that crude inventories rose more than expected to a 10-month high.  Lingering geopolitical risks between Iran and Israel are limiting the downside in crude prices. Crude prices recovered from early losses and posted modest gains Thursday after Iran warned Israel against attacking its nuclear facilities, threatening to respond in kind if its atomic sites are targeted.

Crude oil prices are supported by Israel-Iran tensions.  Top Israeli military officials said Monday that their country has no choice but to respond to Iran’s weekend attack.  There are hopes that any Israeli retaliation will be limited and will perhaps conclude the latest round of tensions that began with Israel striking an Iranian consulate in Syria and killing some top Iranian military generals.

Thursday’s global economic news is mixed for energy demand and crude prices.  On the negative side, US Mar leading indicators fell -0.3% m/m, weaker than expectations of -0.1% m/m.  Also, Eurozone Mar new car registrations fell -5.2% y/y, the biggest decline in 20 months.  On the positive side, the US Apr Philadelphia Fed business outlook survey unexpectedly rose +12.3 to a 2-year high of 15.5 versus expectations of a decline to 2.0.  Also, the Japan Feb tertiary industry index rose +1.5% m/m, stronger than expectations of +0.5% m/m, and the largest increase in 2-1/2 years.

Weakness in the crude crack spread is bearish for crude prices.  The crack spread Thursday fell to a 1-week low, discouraging refiners from purchasing crude oil and refining it into gasoline and distillates. Reduced crude demand in India, the world’s third-largest crude consumer, is negative for oil prices after India’s March oil demand fell -0.6% y/y to 21.09 MMT.

Crude has support from the recent Ukrainian drone attacks on Russian refineries that damaged several Russian oil processing facilities, limiting Russia’s fuel exporting capacity.  Russia’s fuel exports in the week to April 7 fell by -450,000 bpd from the prior week to 3.39 million bpd.  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.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford