Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, prices are down $.03 today, Friday prices will remain unchange then Saturday look for a 7 to 8 cent drop in prices~Be Safe

NMEX Crude      $ 73.82 DN $2.0300

NYMEX ULSD     $2.7129 DN $0.0723

NYMEX Gas       $2.1948 DN $0.0364

NEWS

March WTI crude oil on Thursday closed down -2.03 (-2.68%), and Mar RBOB gasoline closed down -3.64 (-1.63%).Crude oil and gasoline prices on Thursday gave up an early advance and sold off, with crude falling to a 1-week low and gasoline falling to a 2-week low.  Crude prices retreated after Al Jazeera reported that Israel had agreed to a ceasefire.  However, Bloomberg reported that there was not yet a ceasefire agreement but that negotiations are advancing to pause the Israel-Hamas conflict and free civilian hostages captured by Hamas.  Crude prices Thursday initially moved higher on a weaker dollar.  Crude also rose after OPEC+ signaled that its crude production cuts would continue throughout the first quarter.  Gasoline prices remained under pressure from Wednesday when the EIA reported that U.S. gasoline stockpiles rose to a 3-year high. Delegates of OPEC+ said Thursday that they will decide in early March whether to extend their crude oil production cuts into the second quarter.  OPEC+ has pledged supply cuts totaling about 900,000 bpd this quarter in tandem with the 1 million bpd cut in oil production by Saudi Arabia.

Signs of stronger manufacturing activity in the U.S. and China are bullish for energy demand and crude prices.  The U.S. Jan ISM manufacturing index unexpectedly rose +2.0 to a 15-month high of 49.1, stronger than expectations of a decline to 47.2.  Also, the China Jan Caixin manufacturing PMI was unchanged at 50.8, right on expectations and the third straight month of expansion.Geopolitical tensions in the Middle East continue to support crude prices.  President Biden said the U.S. would soon retaliate for the attack on a base in Jordan last Sunday by militants in Iraq that killed three U.S. service members.  Last Friday, Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck an oil tanker with a missile that was carrying fuel in the Gulf of Aden.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this 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” today/tonight, prices are down $.01 but will drop 3 cents Thursday~Be Safe

NMEX Crude      $ 75.85 DN $1.9700

NYMEX ULSD     $2.8014 UP $0.0014

NYMEX Gas       $2.1833 DN $0.0774

NEWS

March WTI crude oil on Wednesday closed down -1.97 (-2.53%), and Mar RBOB gasoline closed down -6.56 (-2.86%). Crude oil and gasoline prices on Wednesday closed moderately lower.  Wednesday’s weaker-than-expected global economic news was negative for energy demand and crude prices.  Losses in crude accelerated after Wednesday’s weekly EIA report showed crude inventories unexpectedly rose and gasoline stockpiles rose to a 3-year high.  The weaker dollar and ongoing geopolitical risks in the Middle East were supportive factors for crude Wednesday.

Wednesday’s weaker-than-expected global economic news was bearish for energy demand and crude prices.  The U.S. Jan ADP employment change rose +107,000, weaker than expectations of +150,000.  Also, the U.S. Jan MNI Chicago PMI unexpectedly fell -1.2 to 46.0, weaker than expectations of an increase to 48.0.  In addition, the China Jan manufacturing PMI rose +0.2 to 49.2, weaker than expectations of 49.3.  Finally, German Dec retail sales unexpectedly fell -1.6% m/m, weaker than expectations of a +0.6% m/m increase.

Geopolitical tensions in the Middle East continue to support crude prices.  On Sunday, three U.S. servicemen were killed after Iranian-backed militants launched a drone attack on a U.S. base in Jordan near the Syrian border.  Last Friday, Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck an oil tanker with a missile that was carrying fuel in the Gulf of Aden.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this 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” today/tonight, Wednesday prices will fall $.01 cent, Thursday prices will continue dropping almost 3 cents~Be Safe

NMEX Crude      $ 77.82 UP $1.0400

NYMEX ULSD     $2.8068 DN $0.0271

NYMEX Gas       $2.2607 UP $0.0322

NEWS

March WTI crude oil on Tuesday closed up +1.04 (+1.35%), and Mar RBOB gasoline closed up +3.22 (+1.42%). Crude oil and gasoline prices on Tuesday recovered from early losses and settled moderately higher.  A weaker dollar Tuesday was supportive of energy prices.  Also, signs of strength in the global economy are bullish for energy demand after the IMF raised its 2024 global GDP forecast.  Crude still has support from heightened geopolitical risks in the Middle East that threaten to disrupt crude supplies from the region.  

On Tuesday, the International Monetary Fund (IMF) raised its 2024 global GDP forecast to 3.1% from a 2.9% projection in October, a supportive factor for energy demand and crude prices.

Better-than-expected global economic news Tuesday shows strength in the global economy that is bullish for crude prices.  The Conference Board U.S. Jan consumer confidence index rose +6.8 points to a 2-year high of 114.8, right on expectations.  Also, the Dec JOLTS job openings unexpectedly rose +101,000 to 9.026 million, showing a stronger labor market than expectations of a decline to 8.750 million.  In addition, Eurozone Q4 GDP was revised upward to unchanged q/q and +0.1% y/y from the previously reported -0.1% q/q and +0.1% y/y.  Finally, the Japan Dec jobless rate unexpectedly fell -0.1 to an 11-month low of 2.4%, showing a stronger labor market than expectations of no change at 2.5%.

Weakness in the crude crack spread is bearish for crude prices as the crack spread Tuesday fell to a 1-1/2 week low.  The lower crack spread discourages refiners from purchasing crude oil and refining it into gasoline and distillates.

The escalation of geopolitical tensions in the Middle East supports crude prices.  On Sunday, three U.S. servicemen were killed after Iranian-backed militants launched a drone attack on a U.S. base in Jordan near the Syrian border.  Last Friday, Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck an oil tanker with a missile that was carrying fuel in the Gulf of Aden.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this 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” today/tonight~Be Safe

NMEX Crude      $ 76.78 DN $1.2300

NYMEX ULSD     $2.8339 DN $0.0095

NYMEX Gas       $2.2285 DN $0.0656

NEWS

March WTI crude oil on Monday closed down -1.23 (-1.58%), and Mar RBOB gasoline closed down -6.12 (-2.63%). Crude oil and gasoline prices on Monday gave up an early advance and closed moderately lower.  Monday’s rally in the dollar index to a 1-1/2 month high weighed energy prices.  Also, signs of a slow start to crude production cuts from OPEC+ members are keeping crude supplies ample and are bearish for prices.  Crude prices Monday initially rallied to a 2-month high on ramped-up geopolitical risks in the Middle East after three U.S. servicemen were killed in a drone attack on a base near the Syrian border. Crude prices came under pressure Monday from a Kpler Ltd report that showed OPEC+ members are slow to start 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 unchanged from December.

The escalation of geopolitical tensions in the Middle East supports crude prices.  On Sunday, three U.S. servicemen were killed after Iranian-backed militants launched a drone attack on a U.S. base in Jordan near the Syrian border.  Last Friday, Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck an oil tanker with a missile that was carrying fuel in the Gulf of Aden.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this 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 after a Ukranian drone attack last Thursday damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said last Friday 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 2.62 million bpd in the four weeks to Jan 21, down -70,000 bpd from the prior week. A decline 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 63.97 million bbl as of Jan 26, the lowest in 3-3/4 years.

On Nov 30, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, crude prices sold off on the news since no details were provided on how the cuts would be distributed among members, nor how Russia’s -300,000 bpd export cut would factor into the new totals.  Delegates said the final details of the new accord, including national production levels, would be announced individually by each country rather than in the customary OPEC+ communique.  The market was disappointed that the extra cuts in OPEC crude output will be announced by each individual country, which suggests the reductions are only voluntary.  Meanwhile, on Dec 21, Angola announced that 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 Dec crude production fell -40,000 bpd to 28.050 million bpd.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Jan 19 were -5.4% below the seasonal 5-year average, (2) gasoline inventories were +1.6 above the seasonal 5-year average, and (3) distillate inventories were -3.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Jan 19 fell -7.5% w/w to 12.3 million bpd, falling back from the previous week’s record high of 13.3 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Jan 26 rose by +2 rigs to 499 rigs, just above the 2-year low of 494 rigs from Nov 10.  The number of U.S. oil rigs in the past year has fallen 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 OUT” today/tonight, Saturday Prices will JUMP UP 11.5 Cents then Sunday look for another JUMP of 5 Cents~Be Safe

NMEX Crude      $ 78.01 UP $.6500

NYMEX ULSD     $2.8434 UP $.0480

NYMEX Gas       $2.2941 UP $.0297

NEWS

March WTI crude oil on Friday closed up +0.65 (+0.84%), and Mar RBOB gasoline closed up +3.48 (+1.52%). Crude oil and gasoline prices on Friday recovered from early losses and settled moderately higher, with crude posting a 2-month high and gasoline posting a 3-month high.  Crude prices shook off early losses and rallied Friday afternoon as Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck a UK oil tanker with a missile in the Gulf of Aden.  Crude prices on Friday initially moved lower as mixed global economic reports sparked concern about energy demand.

The escalation of geopolitical tensions in the Middle East supports crude prices.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this 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 after a Ukranian drone attack on Thursday damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said Friday 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.

Friday’s global economic news was mixed for energy demand and crude prices.  On the negative side, German Feb GfK consumer confidence unexpectedly fell -4.3 to an 11-month low of -29.7, weaker than expectations of an increase to -24.6.  Also,  Japan’s Nov leading index CI was revised lower by -0.1 to a 3-year low of 107.6 from the previously reported 107.7.  On the positive side, U.S. Dec personal spending rose +0.7% m/m, stronger than expectations of +0.5% m/m.

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 2.62 million bpd in the four weeks to Jan 21, down -70,000 bpd from the prior week.

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

To All:

To insure you get the correct fuel discount ALWAYS use the BennettIG App then tap on Fuel Discount Prices, the fuel department updates prices upwards of 4 times daily, 365 days!!

Questions? Please call Loren Bailey, Bennett Fuel Manager 479-790-5581

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Prices will go down less than a penny Friday~Be Safe

NMEX Crude      $ 77.36 UP $2.2720

NYMEX ULSD     $2.7954 UP $0.1136

NYMEX Gas       $2.2644 UP $0.0549

NEWS

March WTI crude oil on Thursday closed up +2.27 (+3.02%), and Mar RBOB gasoline closed up +5.21 (+2.33%). Crude oil and gasoline prices on Thursday rallied to 1-3/4 month highs and closed sharply higher.  Signs of strength in U.S. energy demand support crude prices after Thursday’s report showed that U.S. Q4 GDP grew more than expected.  Also, a drone attack damaged a Russian refinery on Russia’s Black Sea coast, which risks reducing Russian crude exports and global oil supplies.  In addition, crude has carryover support from Wednesday’s weekly EIA report that showed U.S. crude inventories fell more than -9.0 million bbl. 

Thursday’s U.S. economic news was mainly better than expected, a positive factor for energy demand and crude prices.  U.S. Q4 GDP grew at a +3.3% (y/y annualized) pace, stronger than expectations of +2.0%.  Also, Dec capital goods new orders ex-aircraft and parts, a proxy for capital spending, rose +0.3% m/m, stronger than expectations of +0.1% m/m.  In addition, Dec new home sales rose +8.0% m/m to 664,000, stronger than expectations of 649,000.  On the negative side, weekly initial unemployment claims rose +25,000 to 214,000, showing a weaker labor market than expectations of 200,000.

Crude prices found support Thursday after a Ukranian drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  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.

Escalating geopolitical tensions in the Middle East support crude prices.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this 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.

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 2.62 million bpd in the four weeks to Jan 21, down -70,000 bpd from the prior week.

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, Prices will go down less than a penny Thursday~Be Safe

NMEX Crude      $ 75.09 UP $.7200

NYMEX ULSD     $2.6818 DN $.0095

NYMEX Gas       $2.2095 DN $.0006

NEWS

March WTI crude oil on Wednesday closed up +0.72 (+0.97%), and Mar RBOB gasoline closed up +0.56 (+0.25%). Crude oil and gasoline prices on Wednesday posted moderate gains, with crude climbing to a 4-week high.  Wednesday’s decline in the dollar index to a 1-week low supported energy prices.  Also, Wednesday’s rally in the S&P 500 to a new record high shows optimism in the economic outlook that is bullish for energy demand and crude prices.  Crude raced to its high Wednesday after EIA weekly crude inventories fell more than expected.

Wednesday’s action by the PBOC to cut its reserve requirement ratio for banks by 50 bp to 10.00% supports crude prices as it will boost liquidity and may revive economic growth in China, the world’s second-largest crude consumer.

Wednesday’s economic news showed signs of strength in global manufacturing activity that is bullish for energy demand and crude prices.  The U.S. Jan S&P manufacturing PMI unexpectedly rose +2.4 to 50.3, stronger than expectations of a decline to 47.6 and the fastest pace of expansion in 15 months.  Also, the Eurozone Jan S&P manufacturing PMI rose +2.2 to a 10-month high of 46.6, stronger than expectations of 44.7. Concerns about escalating geopolitical tensions in the Middle East support crude prices.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this 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.

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 2.62 million bpd in the four weeks to Jan 21, down -70,000 bpd from the prior week.

Crude prices have support after Ukraine on Sunday launched a drone attack that caused a fire and shut down Russia’s Novatek PJSC’s gas-condensate terminal in the port of Ust-Luga, close to some of Russia’s most important oil export facilities.  An attack by Ukrainian drones on Russian crude export terminals could disrupt Russian crude exports and is bullish for oil prices.

A bearish factor for crude oil was the announcement from Libya’s National Oil Corp that crude flows from the Sharara oil field, which has been closed for the past three weeks, would resume.  The Sharara oil field is Libya’s largest and pumps about 300,000 bpd.

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, Prices will go up Wednesday 3 Cents~Be Safe

NMEX Crude      $ 74.37 DN $.3900

NYMEX ULSD     $2.6913 DN $.0022

NYMEX Gas       $2.2101 DN $.0277

NEWS

March WTI crude oil on Tuesday closed down -0.39 (-0.52%), and Mar RBOB gasoline closed down -2.75 (-1.22%). Crude oil and gasoline prices on Tuesday gave up an early advance and posted moderate losses as a rally in the dollar index to a 1-1/4 month high weighed on most commodity prices.  Crude prices Tuesday initially moved higher on concerns about the escalation of geopolitical tensions in the Middle East after the U.S. and UK launched more airstrikes against Houthi rebels in Yemen. Tuesday’s weaker-than-expected global economic news was bearish for energy demand and crude prices.  The U.S. Jan Richmond Fed manufacturing survey current conditions unexpectedly fell -4 to a 3-1/2 year low of -15, weaker than expectations of an increase to -8.  Also, the Eurozone Jan consumer confidence index unexpectedly fell -1.0 to -16.1, weaker than expectations of an increase to -14.3.

The recent series of hostile incidents in the Red Sea against commercial shipping is bullish for oil prices.  Earlier this 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. 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 2.62 million bpd in the four weeks to Jan 21, down -70,000 bpd from the prior week. Crude prices have support after Ukraine on Sunday launched a drone attack that caused a fire and shut down Russia’s Novatek PJSC’s gas-condensate terminal in the port of Ust-Luga, close to some of Russia’s most important oil export facilities.  An attack by Ukrainian drones on Russian crude export terminals could disrupt Russian crude exports and is bullish for oil prices.

A bearish factor for crude oil was the announcement from Libya’s National Oil Corp that crude flows from the Sharara oil field, which has been closed for the past three weeks, would resume.  The Sharara oil field is Libya’s largest and pumps about 300,000 bpd. 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 +3.2% w/w to 75.28 million bbl as of Jan 19.

On Nov 30, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, crude prices sold off on the news since no details were provided on how the cuts would be distributed among members, nor how Russia’s -300,000 bpd export cut would factor into the new totals.  Delegates said the final details of the new accord, including national production levels, would be announced individually by each country rather than in the customary OPEC+ communique.  The market was disappointed that the extra cuts in OPEC crude output will be announced by each individual country, which suggests the reductions are only voluntary.  Meanwhile, on Dec 21, Angola announced that 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 Dec crude production fell -40,000 bpd to 28.050 million bpd.

The consensus is that Wednesday’s weekly EIA crude inventories will fall by -1.4 million bbl. Last Thursday’s EIA report showed that (1) U.S. crude oil inventories as of Jan 12 were -2.7% below the seasonal 5-year average, (2) gasoline inventories were +0.3 above the seasonal 5-year average, and (3) distillate inventories were -3.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended Jan 12 rose +0.8% w/w at 13.3 million bpd, matching the record high.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Jan 19 fell by -2 rigs to 497 rigs, just above the 2-year low of 494 rigs from Nov 10.  The number of U.S. oil rigs in the past year has fallen 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

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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”

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 ~ Please Be Safe!

NMEX Crude      $ 75.19 UP $1.7800

NYMEX ULSD     $2.6935 UP $0.0314

NYMEX Gas       $2.2378 UP $0.0750

NEWS

February WTI crude oil on Monday closed up +1.78 (+2.42%), and Feb RBOB gasoline  closed up +7.50 (+3.47%). Crude oil and gasoline prices on Monday moved higher, with crude posting a 3-1/2 week high and gasoline posting an 8-week high.   Crude prices rallied Monday after a drone attack shut down a Novatek PJSC gas-condensate terminal on the Baltic Coast near a major oil export terminal,  threatening to disrupt Russian crude exports.  Also, Monday’s rally in the S&P 500 to a record high shows confidence in the U.S. economic outlook that is bullish for energy demand and crude prices.

An attack by Ukrainian drones on Russian crude export terminals could disrupt Russian crude exports and is bullish for oil prices.  On Sunday, Ukraine launched a drone attack that caused a fire and shut down Russia’s Novatek PJSC’s gas-condensate terminal in the port of Ust-Luga, close to some of Russia’s most important oil export facilities. A bearish factor for crude oil was the announcement from Libya’s National Oil Corp that crude flows from the Sharara oil field, which has been closed for the past three weeks, would resume.  The Sharara oil field is Libya’s largest and pumps about 300,000 bpd.

The recent series of hostile incidents in the Red Sea against commercial shipping is bullish for oil prices.  Earlier this 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. An increase in Russian crude oil exports is bearish for crude oil prices.  Tanker-tracking data from Vortexa monitored by Bloomberg shows the four-week average of refined fuel shipments from Russia rose to 2.77 million bpd in the four weeks to Jan 14, up +53,000 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 +3.2% w/w to 75.28 million bbl as of Jan 19.

On Nov 30, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, crude prices sold off on the news since no details were provided on how the cuts would be distributed among members, nor how Russia’s -300,000 bpd export cut would factor into the new totals.  Delegates said the final details of the new accord, including national production levels, would be announced individually by each country rather than in the customary OPEC+ communique.  The market was disappointed that the extra cuts in OPEC crude output will be announced by each individual country, which suggests the reductions are only voluntary.  Meanwhile, on Dec 21, Angola announced that 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 Dec crude production fell -40,000 bpd to 28.050 million bpd.

Last Thursday’s EIA report showed that (1) U.S. crude oil inventories as of Jan 12 were -2.7% below the seasonal 5-year average, (2) gasoline inventories were +0.3 above the seasonal 5-year average, and (3) distillate inventories were -3.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended Jan 12 rose +0.8% w/w at 13.3 million bpd, matching the record high.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Jan 19 fell by -2 rigs to 497 rigs, just above the 2-year low of 494 rigs from Nov 10.  The number of U.S. oil rigs in the past year has fallen 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  

None at this time

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