Fueling Strategy: Please “FUEL AS NEEDED” prices are down 2.5 cents but plan on Friday’s 8.5 cent drop~ Be Safe

NMEX Crude      $ 78.03 UP $1.3900

NYMEX ULSD     $2.8237 UP $0.0136

NYMEX Gas       $2.3183 UP $0.0014

NEWS

March WTI crude oil on Thursday closed up +1.39 (+1.81%), and Mar RBOB gasoline closed up +0.14 (+0.06%). Crude oil and gasoline prices on Thursday finished moderately higher.  A weaker dollar Thursday was supportive of energy prices.  Also, concern the Israel-Hamas war could escalate and disrupt crude supplies from the Middle East is bullish for oil prices after Israel said it killed a commander of Hezbollah in an airstrike in Lebanon, and Lebanon warned of a wider conflict.  In addition, Israel said it ended ceasefire talks with Hamas, citing “delusional” Hamas demands. A negative factor for crude prices was Thursday’s report from the International Energy Agency (IEA) that said the crude market could be in surplus all during 2024.  The IEA predicted global oil demand in 2024 will increase by +1.2 million bpd, just half last year’s rate.  Also, the IEA said cuts to crude production by OPEC+ have been smaller than announced, with the group’s crude output falling by just -330,000 bpd in January, much less than the announced cuts of -900,000 bpd.

Thursday’s global economic news was mixed for energy demand and crude prices.  On the bearish side, U.S. Jan retail sales fell -0.8% m/m, weaker than expectations of -0.2% m/m and the biggest decline in 10 months.  Also,  U.S. Jan manufacturing production unexpectedly fell -0.5% m/m, weaker than expectations of no change.  In addition, the ECB cut its 2024 Eurozone GDP forecast to 0.8% from a November estimate of 1.2%.  Finally, Japan’s Q4 GDP unexpectedly contracted -0.4% (q/q annualized), weaker than expectations of +1.1%.  On the positive side, U.S. weekly initial unemployment claims unexpectedly fell -8,000 to 212,000, showing a stronger labor market than expectations of an increase to 220,000.  Also, the U.S. Feb NAHB housing market index rose +4 to a 6-month high of 48, stronger than expectations of 46.

Gasoline prices have support amid unexpected refinery outages in the U.S. that reduced gasoline supplies.  Recent shutdowns at large refineries, including BP Plc’s Whiting, Indiana facility and a Phillips 66 unit in Ponca City, Oklahoma, have contributed to tighter U.S. gasoline supplies.

A decline in Russian crude oil exports is supportive of crude oil prices.  Tanker-tracking data from Vortexa, monitored by Bloomberg, shows Russian crude exports in the week to Feb 11 fell about -290,000 bpd from the prior week to 3.49 million bpd. Strong oil-product consumption in India, the world’s third largest crude consumer, is bullish for oil prices after India’s Jan oil-product consumption rose +8.3% y/y to 20 MMT, the most in 9 months. A bearish factor for crude was a report Sunday from Goldman Sachs Group that said there is a 600,000 bpd downside risk to its forecast for Chinese oil demand in Q4 due to China’s macro policy and a recent surge of electric vehicle sales in the country.

Last Thursday’s comments from Israeli Prime Minster Netanyahu were bullish for crude prices when he said Israel could achieve complete victory over Hamas within months and rejected any talks about a ceasefire.  The continuation of the war threatens to escalate and widen throughout the Middle East, a region that accounts for about a third of the world’s oil output. Geopolitical tensions in the Middle East continue to support crude prices.  The U.S. and UK have ramped up airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Last month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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.

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” prices are down 5 cents but plan on Thursday’s 2.5 cent drop~ Be Safe

NMEX Crude      $ 76.64 DN $1.2300

NYMEX ULSD     $2.8101 DN $0.0858

NYMEX Gas       $2.3169 DN $0.0777

NEWS

March WTI crude oil on Wednesday closed down -1.23 (-1.58%), and Mar RBOB gasoline closed down -7.77 (-3.24%). Crude oil and gasoline prices on Wednesday gave up early gains and settled sharply lower, with crude falling back from a 2-week high.  Crude prices turned lower after weekly EIA crude inventories rose more than expected.  Crude prices Wednesday initially moved higher on a weaker dollar and Middle Eastern geopolitical risks with the ongoing war in Gaza and continued attacks on commercial shipping in the Red Sea by Houthi militants. Gasoline prices have support amid unexpected refinery outages in the U.S. that reduced gasoline supplies.  Recent shutdowns at large refineries, including BP Plc’s Whiting, Indiana facility and a Phillips 66 unit in Ponca City, Oklahoma, have contributed to tighter U.S. gasoline supplies.

A decline in Russian crude oil exports is supportive of crude oil prices.  Tanker-tracking data from Vortexa, monitored by Bloomberg, shows Russian crude exports in the week to Feb 11 fell about -290,000 bpd from the prior week to 3.49 million bpd. Strong oil-product consumption in India, the world’s third largest crude consumer, is bullish for oil prices after India’s Jan oil-product consumption rose +8.3% y/y to 20 MMT, the most in 9 months. A bearish factor for crude was a report Sunday from Goldman Sachs Group that said there is a 600,000 bpd downside risk to its forecast for Chinese oil demand in Q4 due to China’s macro policy and a recent surge of electric vehicle sales in the country.  

Last Thursday’s comments from Israeli Prime Minster Netanyahu were bullish for crude prices when he said Israel could achieve complete victory over Hamas within months and rejected any talks about a cease-fire.  The continuation of the war threatens to escalate and widen throughout the Middle East, a region that accounts for about a third of the world’s oil output. Geopolitical tensions in the Middle East continue to support crude prices.  The U.S. and UK have ramped up airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Last month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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 prices also have support from Ukrainian drone attacks on Russian refineries and oil storage facilities that have curtailed Russian fuel exports.  On Feb 3, a drone attack by Ukraine damaged Russia’s Lukoil PJSC facility in Volgograd, which processed 289,000 bpd of crude oil in January, or more than 5% of Russia’s total crude processing volume.  On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said on Jan 26 that the Tuapse refinery, which processed 180,000 bpd of crude in the first half of January, will be shut down through at least February.  In recent weeks, several Russian oil processing and storage facilities have been targeted and damaged by Ukrainian drone attacks, increasing the risks of reducing Russian crude exports. An increase in crude in floating storage is bearish 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 rose +0.5% w/w to 84.17 million bbl as of Feb 9.

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, Wednesday prices will drop 4.5 cent ~ Be Safe

NMEX Crude      $ 77.87 UP $.9500

NYMEX ULSD     $2.8959 DN $.0237

NYMEX Gas       $2.3946 UP $.0273

NEWS

March WTI crude oil on Tuesday closed up +0.95 (+1.24%), and Mar RBOB gasoline closed up +2.73 (+1.15%). Crude oil and gasoline prices on Tuesday settled moderately higher, with crude posting a 2-week high and gasoline climbing to a 3-1/2 month high.   Crude has support from Middle Eastern geopolitical risks with the ongoing war in Gaza and continued attacks on commercial shipping in the Red Sea by Houthi militants.  Gains in crude accelerated Tuesday after prices rose above the 200-day moving average, which sparked some technical buying. Gasoline prices have support amid unexpected refinery outages in the U.S. that reduced gasoline supplies.  Recent shutdowns at large refineries, including BP Plc’s Whiting, Indiana facility and a Phillips 66 unit in Ponca City, Oklahoma, have contributed to tighter U.S. gasoline supplies.

Tuesday’s rally in the dollar index to a 3-month high limited gains in crude.  Also, Tuesday’s slump in stocks curbed optimism about the economic outlook that is bearish for energy demand and crude prices.

A decline in Russian crude oil exports is supportive of crude oil prices.  Tanker-tracking data from Vortexa, monitored by Bloomberg, shows Russian crude exports in the week to Feb 11 fell about -290,000 bpd from the prior week to 3.49 million bpd. Strong oil-product consumption in India, the world’s third largest crude consumer, is bullish for oil prices after India’s Jan oil-product consumption rose +8.3% y/y to 20 MMT, the most in 9 months. A bearish factor for crude was a report Sunday from Goldman Sachs Group that said there is a 600,000 bpd downside risk to its forecast for Chinese oil demand in Q4 due to China’s macro policy and a recent surge of electric vehicle sales in the country.  

Last Thursday’s comments from Israeli Prime Minster Netanyahu were bullish for crude prices when he said Israel could achieve complete victory over Hamas within months and rejected any talks about a cease-fire.  The continuation of the war threatens to escalate and widen throughout the Middle East, a region that accounts for about a third of the world’s oil output. Geopolitical tensions in the Middle East continue to support crude prices.  The U.S. and UK have ramped up airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Last month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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 prices also have support from Ukrainian drone attacks on Russian refineries and oil storage facilities that have curtailed Russian fuel exports.  On Feb 3, a drone attack by Ukraine damaged Russia’s Lukoil PJSC facility in Volgograd, which processed 289,000 bpd of crude oil in January, or more than 5% of Russia’s total crude processing volume.  On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said on Jan 26 that the Tuapse refinery, which processed 180,000 bpd of crude in the first half of January, will be shut down through at least February.  In recent weeks, several Russian oil processing and storage facilities have been targeted and damaged by Ukrainian drone attacks, increasing the risks of reducing Russian crude exports.

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      $ 76.92 UP $.0800

NYMEX ULSD     $2.9196 DN $.0446

NYMEX Gas       $2.3673 UP $.0278

NEWS

March WTI crude oil on Monday closed up +0.08 (+0.10%), and Mar RBOB gasoline closed up +2.78 (+1.19%). Crude oil and gasoline prices on Monday settled higher, with gasoline climbing to a 3-1/2 month high.   Crude has support from Middle Eastern geopolitical risks with the ongoing war in Gaza and continued attacks on commercial shipping in the Red Sea by Houthi militants.  Gasoline prices found support amid unexpected refinery outages in the U.S. that reduced gasoline supplies.  Recent shutdowns at large refineries, including BP Plc’s Whiting, Indiana facility and a Phillips 66 unit in Ponca City, Oklahoma, have contributed to tighter U.S. gasoline supplies. A stronger dollar on Monday limited gains in crude.  Also, Goldman Sach warned that there is a risk for oil demand in China, the world’s second-largest crude consumer. A bearish factor for crude was a report Sunday from Goldman Sachs Group that said there is a 600,000 bpd downside risk to its forecast for Chinese oil demand in Q4 due to China’s macro policy and a recent surge of electric vehicle sales in the country.

Strong oil-product consumption in India, the world’s third largest crude consumer, is bullish for oil prices after India’s Jan oil-product consumption rose +8.3% y/y to 20 MMT, the most in 9 months.

Last Thursday’s comments from Israeli Prime Minster Netanyahu were bullish for crude prices when he said Israel could achieve complete victory over Hamas within months and rejected any talks about a cease-fire.  The continuation of the war threatens to escalate and widen throughout the Middle East, a region that accounts for about a third of the world’s oil output. Geopolitical tensions in the Middle East continue to support crude prices.  The U.S. and UK have ramped up airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Last month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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 prices also have support from Ukrainian drone attacks on Russian refineries and oil storage facilities that have curtailed Russian fuel exports.  On Feb 3, a drone attack by Ukraine damaged Russia’s Lukoil PJSC facility in Volgograd, which processed 289,000 bpd of crude oil in January, or more than 5% of Russia’s total crude processing volume.  On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said on Jan 26 that the Tuapse refinery, which processed 180,000 bpd of crude in the first half of January, will be shut down through at least February.  In recent weeks, several Russian oil processing and storage facilities have been targeted and damaged by Ukrainian drone attacks, increasing the risks of reducing Russian crude exports. A decline in Russian crude oil exports is supportive of crude oil prices.  Tanker-tracking data from Vortexa monitored by Bloomberg shows the four-week average of refined fuel shipments from Russia fell to 3.09 million bpd in the four weeks to Jan 28, down -250,000 bpd from the prior week.

An increase in crude in floating storage is bearish 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 rose +0.5% w/w to 84.17 million bbl as of Feb 9.

On Nov 30, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, a Bloomberg survey on Thursday showed the group cut production by -490,000 bpd in January, below the agreed-upon -1.0 million bpd cut.  Meanwhile, on Dec 21, Angola announced it was leaving OPEC amid a dispute over oil production quotas. Saudi Arabia said on Nov 30 that it would maintain its unilateral crude production cut of 1.0 million bpd through Q1-2024.  The move would maintain Saudi Arabia’s crude output at about 9 million bpd, the lowest level in three years.  Russia also said it will deepen its voluntary oil export cuts by 200,000 bpd to 500,000 bpd in Q1 of 2024.  OPEC Jan crude production fell -1.59 million bpd to 26.570 million bpd, a 2-1/2 year low.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Feb 2 were -3.9% below the seasonal 5-year average, (2) gasoline inventories were -0.3% above the seasonal 5-year average, and (3) distillate inventories were -7.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Feb 2 rose +2.3% w/w to 13.3 million bpd and matched its record high.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Feb 9 were unchanged at 499 rigs, just above the 2-year low of 494 rigs posted on Nov 10.  The number of U.S. oil rigs has fallen over the past year from the 3-3/4 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 “KEEP YOUR TANKS TOPPED” prices will JUMP up another 7.5 cents Saturday then Sunday look for another jump up of 7.5 cents ~ Be Safe

NMEX Crude      $ 76.84 UP $.6200

NYMEX ULSD     $2.9642 UP $.0734

NYMEX Gas       $2.3395 DN $.0025

NEWS

Feb 9 (Reuters) – Oil prices settled higher on Friday, up about 6% on a week-on-week basis, as worries about supply from the Middle East mounted and as reining outages tightened refined products markets. Brent crude futures settled up 56 cents, or 0.7%, at $82.19 a barrel. U.S. West Texas Intermediate crude futures settled up 62 cents or 0.8%, at $76.84 a barrel.

Oil futures rose throughout the week, buoyed after Israeli Prime Minister Benjamin Netanyahu’s rejection of a Hamas ceasefire proposal on Wednesday. This week’s rise followed a 7% loss in the prior week. “We believe that this type of week-to-week wide price swings will further characterize the crude markets through the rest of this month short of major bullish headlines out of the Mideast that could force adjustment in global oil balances,” said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois.

U.S. energy firms this week also added 4 oil and natural gas rigs to 623 this week, its highest since mid-December, energy services firm Baker Hughes said in its closely followed report. U.S. domestic production returned this week to a record 13.3 million barrels per day level, according to the U.S. Energy Information Administration. Last month, frigid weather caused widespread shut-ins in oil producing regions.

Israeli forces on Friday continued deadly air strikes on the Gaza Strip. On Thursday, the bombing of the southern border city of Rafah helped boost oil prices by around 3%. With the words that, ‘no part of the Gaza Strip would be immune from Israel’s offensive’, it was not hard for oil participants to conclude that without even a passing regard for peace, there was not enough conflict-premium priced in,” said John Evans, an analyst at PVM.

Crude futures were also supported by strength in gasoline and diesel prices as significant U.S. refinery downtime, both planned and unplanned, tightened product markets.Gasoline futures rose about 9% in the week to $2.34 per gallon while heating oil futures increased by 11% to $2.96 per gallon.

Ukraine launched drone attacks against two oil refineries oil refineries in southern Russia on Friday, resulting in a fire at the Ilsky refinery. The Afipsky refinery, also in Krasnodar Krai, which borders Crimea on the Black Sea and Azov Sea coast, was the other facility in the attack. Russia has been exporting more crude in February than planned under an OPEC+ deal, following a combination of drone attacks and technical outages at its refineries. “Proof still needs to be provided that Russia is able to cut oil exports sufficiently even without weather-related constraints,” Carsten Fritsch, an analyst at Commerzbank, said on Friday in reference to the country’s OPEC+ cut quota.

On Thursday, the U.S. Treasury Department sanctioned another three entities based in the United Arab Emirates (UAE) and one tanker registered by Liberia for violating a cap placed on the price of Russian oil by a coalition of Western nations.

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” prices will JUMP up another 7 cents Friday then another 8 cents Saturday ~ Be Safe

NMEX Crude      $ 76.22 UP $2.3600

NYMEX ULSD     $2.8908 UP $0.0756

NYMEX Gas       $2.3420 UP $0.0790

NEWS

March WTI crude oil on Thursday closed up +2.36 (+3.20%), and Mar RBOB gasoline closed up +7.90 (+4.49%). Crude oil and gasoline prices on Thursday rallied to 1-week highs and closed sharply higher.  Crude prices jumped Thursday after Israeli Prime Minster Netanyahu dismissed the chances for a cease-fire in the Israel-Hamas war.

Comments from Israeli Prime Minster Netanyahu pushed crude prices higher Thursday when he said Israel could achieve complete victory over Hamas within months and rejected any talks about a cease-fire.  The continuation of the war threatens to escalate and widen throughout the Middle East, a region that accounts for about a third of the world’s oil output. Geopolitical tensions in the Middle East continue to support crude prices.  The U.S. and UK have ramped up airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Last month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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.

Thursday’s global economic news was mixed for energy demand and crude prices.  On the positive side, U.S. weekly initial unemployment claims fell -9,000 to 218,000, showing a stronger labor market than expectations of 220,000.  Conversely, China’s Jan CPI fell -0.8% y/y, weaker than expectations of -0.5% y/y and the steepest pace of decline in 14 years.  The weak CPI report was negative for China’s economic outlook.

Strength in the crude crack spread supported crude prices as Thursday’s crack spread rose to a 4-1/2 month high.  The stronger crack spread encourages refiners to boost their crude oil purchases and refine it into gasoline and distillates.

Crude prices also have support from Ukrainian drone attacks on Russian refineries and oil storage facilities that have curtailed Russian fuel exports.  On Sunday, a drone attack by Ukraine damaged Russia’s Lukoil PJSC facility in Volgograd, which processed 289,000 bpd of crude oil in January, or more than 5% of Russia’s total crude processing volume.  On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said on Jan 26 that the Tuapse refinery, which processed 180,000 bpd of crude in the first half of January, will be shut down through at least February.  In recent weeks, several Russian oil processing and storage facilities have been targeted and damaged by Ukrainian drone attacks, increasing the risks of reducing Russian crude exports.

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” prices will JUMP up another 2 cents Thursday ~ Be Safe

NMEX Crude      $ 73.86 UP $.5500

NYMEX ULSD     $2.8152 UP $.0725

NYMEX Gas       $2.2630 UP $.0457

NEWS

March WTI crude oil on Wednesday closed up +0.55 (+0.75%), and Mar RBOB gasoline closed up +4.57 (+2.06%). Crude oil and gasoline prices Wednesday settled moderately higher.  A weaker dollar on Wednesday was bullish for energy prices.  Also, ongoing geopolitical risks in the Middle East are underpinning crude prices as Houthi rebels attacked two more ships in the southern Red Sea.  Gains in crude prices were limited after weekly EIA crude inventories rose more than expected.

Geopolitical tensions in the Middle East continue to support crude prices.   The U.S. and UK have ramped up airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Last month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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.

Strength in the crude crack spread supports crude prices as the crack spread on Wednesday climbed to a 4-1/2 month high.  The stronger crack spread encourages refiners to boost their crude oil purchases and refine it into gasoline and distillates.

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” prices will JUMP up 6.5 cents ~ Be Safe

NMEX Crude      $ 73.31 UP $.5300

NYMEX ULSD     $2.7427 UP $.0179

NYMEX Gas       $2.2173 UP $.0081

NEWS

March WTI crude oil on Tuesday closed up +0.53 (+0.73%), and Mar RBOB gasoline closed up +0.81 (+0.37%). Crude oil and gasoline prices on Tuesday posted moderate gains.  A weaker dollar Tuesday was supportive of energy prices.  Also, ongoing geopolitical risks in the Middle East are underpinning crude prices as the U.S. and UK vow more strikes on Houthi rebels in Yemen for attacking commercial shipping in the Red Sea.  In addition, crude has support due to reduced Russian refining capacity after Ukranian drone attacks halted output at two Russian refineries.   Gains in crude oil were limited as economic growth remained subdued in China, the world’s second-largest crude consumer.

Tuesday’s global economic news is mixed for energy demand and crude prices.  On the positive side, German Dec factory orders unexpectedly rose +8.9% m/m, stronger than expectations of -0.2% m/m and the largest increase in 3-1/2 years.  Conversely, Eurozone Dec retail sales fell -1.1% m/m, weaker than expectations of -1.0% m/m and the biggest decline in a year.  Also, Japan Dec household spending fell -2.5% y/y, weaker than expectations of -2.0% y/y.

Geopolitical tensions in the Middle East continue to support crude prices.   The U.S. and UK have ramped up airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Last month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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 prices also have support from Ukranian drone attacks on Russian refineries and oil storage facilities.  On Sunday, a drone attack by Ukraine damaged Russia’s Lukoil PJSC facility in Volgograd, which processed 289,000 bpd of crude oil in January, or more than 5% of Russia’s total crude processing volume.  On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said on Jan 26 that the Tuapse refinery, which processed 180,000 bpd of crude in the first half of January, will be shut down through at least February.  In recent weeks, several Russian oil processing and storage facilities have been targeted and damaged by Ukrainian drone attacks, increasing the risks of reducing Russian crude exports.

A negative factor for crude prices was last Monday’s Kpler Ltd report that said OPEC+ members are dragging their feet on new crude output cuts.  According to Kpler estimates, exports from the seven OPEC+ members engaged in new crude production cuts announced for January have averaged about 15.4 million bpd so far this month, barely changed from December. A decline in Russian crude oil exports is supportive of crude oil prices.  Tanker-tracking data from Vortexa monitored by Bloomberg shows the four-week average of refined fuel shipments from Russia fell to 3.09 million bpd in the four weeks to Jan 28, down -250,000 bpd from the prior week.

An increase in crude in floating storage is bearish 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 rose +8.3% w/w to 73.09 million bbl as of Feb 2.

On Nov 30, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, a Bloomberg survey on Thursday showed the group cut production by -490,000 bpd in January, below the agreed-upon -1.0 million bpd cut.  Meanwhile, on Dec 21, Angola announced it was leaving OPEC amid a dispute over oil production quotas. Saudi Arabia said on Nov 30 that it would maintain its unilateral crude production cut of 1.0 million bpd through Q1-2024.  The move would maintain Saudi Arabia’s crude output at about 9 million bpd, the lowest level in three years.  Russia also said it will deepen its voluntary oil export cuts by 200,000 bpd to 500,000 bpd in Q1 of 2024.  OPEC Jan crude production fell -1.59 million bpd to 26.570 million bpd, a 2-1/2 year low.

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      $ 72.78 UP $.5000

NYMEX ULSD     $2.7248 UP $.0648

NYMEX Gas       $2.2092 UP $.0617

NEWS

Oil prices rose Monday after the U.S. launched retaliatory strikes in Iraq and Syria against Iranian forces and their allies over the weekend, raising the risk that the Middle East is heading toward a broader conflict. The West Texas Intermediate contract for March rose 50 cents, or 0.69%, to settle at $72.78 a barrel. The Brent contract for April gained 66 cents, or 0.85%, to settle at $77.99 a barrel. The two benchmarks were down about 1% earlier in the session. “There was never a reason for oil to have traded negative this morning, given the weekend’s ongoing military actions in the Middle East were favorable to oil,” Manish Raj, managing director of Velandera Energy Partners, told CNBC. Velandera’s team was buying the dip in oil in the morning, Raj said.

The U.S. launched retaliatory airstrikes Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria. The airstrikes, which hit more than 85 targets, came in response to the deaths of three U.S. troops in a drone strike by Iran-allied militants. The U.S and the U.K. also launched renewed strikes Saturday against Houthi militants in Yemen. The Houthis, who are allied with Iran, have repeatedly targeted commercial shipping in the Red Sea. “That’s coming dangerously close to firing up the hornets’ nest in Iran — how long can they sit there while their allies get pounded one after another,” Bob Yawger, managing director and energy futures strategist at Mizuho Americas, told CNBC.

U.S. Secretary of State Antony Blinken arrived in the Middle East on Monday to push for an extended humanitarian pause in Gaza in exchange for the release of hostages held by Hamas. Blinken will visit Saudi Arabia, Egypt, Qatar, Israel and the West Bank this week. The war in Gaza has pushed the U.S. and Iran to the brink of a direct confrontation, one which analysts have warned could affect crude supplies if there is a disruption in the Strait of Hormuz.

The U.S. is also increasing its urgent military assistance to the small, oil-rich nation of Guyana, officials told the Associated Press on Monday. Guyana is locked in a border dispute with its much larger neighbor Venezuela, which is trying to claim the resource-rich Essequibo region.

Oil had traded lower Monday morning as the dollar strengthened after Federal Reserve Chairman Jerome Powell reiterated the central bank’s cautious approach to lowering interest rates.

Powell said in an interview that aired on Sunday that the central bank is unlikely to slash rates in March. The Fed chair’s comments came after a much stronger jobs report than expected Friday, with the labor market adding 353,000 jobs compared to the 185,000 expected. “With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully,” Powell told CBS’ “60 Minutes.” Lower interest rates typically boost economic growth, which would imply stronger crude oil demand.

The dollar rose to its highest level in more than two months Monday as investors reduce their expectations for rate cuts. A stronger greenback makes crude oil, which is priced in dollars, more expensive for holders of other currencies, which can weigh on demand.

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” tonight, Saturday prices will drop 7.5 cents then Sunday look for prices to drop another 5 cents ~ Be Safe

NMEX Crude      $ 72.28 DN $1.5400

NYMEX ULSD     $2.6600 DN $0.0529

NYMEX Gas       $2.1475 DN $0.0473

NEWS

March WTI crude oil on Friday closed down -1.54 (-2.09%), and Mar RBOB gasoline closed down -4.73 (-2.16%). Crude oil and gasoline prices on Friday tumbled to 2-week lows and closed moderately lower.  Friday’s rally in the dollar index to a 7-week high weighed energy prices.  Also, advanced negotiations to halt the war in Gaza and release hostages are reducing the geopolitical risk premium in crude prices.  Technical selling added to Friday’s decline in crude after prices fell below their 50 and 200-day moving averages, triggering trend-following algorithms.

Crude prices are under pressure as negotiations continue for a halt in the war in Gaza, which has threatened crude shipments from the Middle East.  Bloomberg reported that talks are advancing for an agreement to pause the Israel-Hamas war and free civilian hostages captured by Hamas.

Friday’s stronger-than-expected U.S. economic news is bullish for energy demand and crude prices.  Jan nonfarm payrolls jumped +353,000, stronger than expectations of +185,000 and the biggest increase in a year.  Also, the Jan unemployment rate was unchanged at 3.7%, showing a stronger labor market than expectations of an increase to 3.8%.  In addition, the University of Michigan U.S. Jan consumer sentiment index was revised upward by +0.2 to a 2-1/2 year high of 79.0, stronger than expectations of 78.9.

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