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Fueling Strategy: Diesel users, Please fuel as needed today/tonight, prices are down 6.5 cents, Thursday prices will remain unchanged to slightly up. It will be VERY important for you to keep your tanks full tanks from now until 23:00 CST Thursday night.

Gasoline users, As predicted prices will continue to ramp up to Christmas, Thursday prices will jump UP another 3.5 cents- Be Safe Today

NMEX Crude     $ 78.29 UP $2.0600

NYMEX ULSD    $3.1395 UP $0.0806

NYMEX Gas      $2.2558 UP $0.0330

NEWS

Oil rallied to the highest since early December as US crude inventories fell more than anticipated.

West Texas Intermediate futures for February settled above $78 a barrel after a 5.90-million-barrel stock draw reported by the Energy Information Administration helped reverse the selloff earlier this month. Trading volumes sank to the lowest level since May with many participants already gone for the holidays.

Crude remains on track for the first back-to-back quarterly decline since 2019 as further tightening by leading central banks risks tipping the US and European Union into recession. Traders are also tracking the impact of China’s easing of harsh virus restrictions, and a warning from Saudi Arabia that the Organization of Petroleum Exporting Countries and its allies would remain proactive and pre-emptive in managing the global oil market.

Russia’s seaborne oil shipments collapsed in the first week of Group-of-Seven sanctions targeting Moscow’s petroleum revenues, a potential source of alarm for governments around the world. In North America, meanwhile, TC Energy Corp pushed back the full return of its Keystone pipeline by a week.

Have a Great Day,

 Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please diesel buyers partial fill ONLY tonight, Wednesday diesel will fall 6 to 7 cents then Thursday look for prices to go up 1/2 cent. Gasoline will continue upwards Wednesday +5 cents  ~ Be Safe

NMEX Crude     $ 75.77 UP $.6400

NYMEX ULSD    $3.0589 UP $.0054

NYMEX Gas      $2.2228 UP $.0452

NEWS

Oil rose in a session marked by waning liquidity ahead of the holiday season, supported by a softer dollar and a potential boost in energy demand after China abandoned its Covid Zero policy.

West Texas Intermediate settled above $76 a barrel after flip-flopping much of the session, aided by a weaker dollar, which makes commodities priced in the currency more attractive. China’s efforts to revive its economy by removing harsh virus curbs is spurring hopes of higher consumption in the long term.

Continued supply disruptions in the US are also supporting oil. TC Energy pushed back its targeted restart for the Keystone pipeline by a week and is now aiming for December 28 or 29, according to people familiar with the batter. Elsewhere, output in North Dakota has fallen by about 300,000 barrels a day since a winter storm last week and the recovery will take some time. 

Crude is still on track for a second monthly loss with a persistent lack of liquidity leaving prices prone to large swings. The US Federal Reserve is continuing with aggressive interest-rate hikes, while a top European Central Bank official said it would take time for inflation to be brought down.

The Saudi oil minister reminded oil market participants that OPEC+  can and will continue to make decisions based on how it views market conditions and can pivot accordingly. OPEC and its allies have no choice but to remain pro-avtive and preemptive given the uncertainties that face the market, Abdulaziz bin Salman bin Abdulaziz Al Saud said. 

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please fuel as needed tonight, Gasoline have your tanks topped,  Tuesday gasoline will go UP 4.5 cents, Diesel buyers should partial fill only due to Wednesday prices will fall 6 to 7 cents~Be Safe  

NMEX Crude     $ 75.19 UP $.9000

NYMEX ULSD    $3.0535 DN $.0664

NYMEX Gas      $2.1776 UP $.0453

NEWS

Oil tipped higher as investors weighed a pledge from China to revive consumption against broader low-risk sentiment.

West Texas Intermediate settled above $75 a barrel, ending the day higher for the first time in three sessions, after flip-flopping in a narrow range on Monday. Market participants saw Chinese President Xi Jinping’s pledge to focus on the economy as supporting energy demand— even as Covid cases surge and the economic reopening of the country gets bumpy.

Meanwhile, markets shied away from risky assets as the outlook for global growth has dimmed in the face of more expected interest-rate hikes. Crude markets are more susceptible to tracking broader markets as liquidity in the commodity declines before the holidays.  It’s another day of “fragile trading” where markets are bid following headlines from China reopening, said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “At the end of the day, conviction to buy the dip is still quite low.”

Oil is still headed for a second monthly loss as concerns about recessions in the US and Europe mount, with central banks continuing to tighten policy. In addition, Russian flows have so far proven resilient as a price cap imposed by the Group of Seven and European Union hasn’t led to major disruptions. Among major buyers, India said it doesn’t expect problems.

 In the US, authorities are moving to replenish the Strategic Petroleum Reserve, starting with a 3-million barrel, fixed-price purchase, the Department of Energy said on Friday. The announcement caps a year that saw President Joe Biden order an unprecedented release from the SPR to help curb soaring domestic energy costs, which spiked after Russia’s invasion of Ukraine.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

 “To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please fuel as needed tonight, Saturday prices will remain basically unchanged in diesel with gasoline dropping 3 to 4 cents, Sunday look for a 16 to 17 cent drop in diesel prices Be Safe Today

NMEX Crude     $ 74.29 DN $1.8200

NYMEX ULSD    $3.1199 DN $0.1635

NYMEX Gas      $2.1323 DN $0.0345

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Market Close: Dec 15 Mixed

Fueling Strategy: Please continue keeping your tanks full of fuel tonight, Friday look for prices to jump up 18.5 cents, Gas will drop 8 cents ~ Be Safe

NMEX Crude     $ 76.11 DN $1.1700

NYMEX ULSD    $3.2834 UP $0.0066

NYMEX Gas      $2.1668 DN $0.0776

NEWS

Oil snapped a three-day rally. Commodities from oil to copper were under pressure as fears of a global economic slowdown and waning demand mounted. The dollar climbed the most since September as investors sought haven assets. 

“The pullback in the market today — we aren’t surprised by it,” Nadia Lovell, UBS Global Wealth Management senior US equity strategist, told Bloomberg Television on Thursday. “This is a market that has traded on the hope that the Fed will not do what they say they will do. Yesterday they sent a clearly different message.”

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please continue keeping your tanks full of fuel today/tonight, Thursday prices will jump UP another 13 cents THEN Friday look for prices to jump up again 18.5 cents ~ Be Safe

NMEX Crude     $ 77.28 UP $1.8900

NYMEX ULSD    $3.2768 UP $0.1846

NYMEX Gas      $2.2425 UP $0.0816

NEWS

Oil rallied for a third day to the highest level in more than a week, undaunted by the Federal Reserve’s determination to fight inflation with a sustained policy of rate hikes.

The jump Wednesday comes after the International Energy Agency said 2023 oil prices may rise as sanctions squeeze Russian supplies and demand beats earlier forecasts.

Prices shed some of their gains after the US Federal Reserve raised rates by 50 basis-points. Broader markets shied away from risky-assets after the central bank reinterate that inflation in the US remains elevated and higher rate hikes in the future were not ruled out.

Still, crude is on track for its first back-to-back quarterly decline since 2019 as concerns about a global economic slowdown persist. Goldman Sachs Group Inc. was among those to trim their outlooks for next year.

PRICES:
  • * WTI for January delivery rose $1.89 to settle at $77.28 New York.
  • * Brent for February increased $2.02 to $82.66 a barrel.

Wednesday’s rally defied some bearish headlines. Among them: US crude stockpiles rose more than 10 million barrels last week, the most since March 2021, according to the Energy Information Administration. The inventory build came after TC Energy shut its massive Keystone oil pipeline due to a leak. News that the company was planning a partial restart of the line Wednesday, followed by full resumption Dec. 20, has weighed on prices at times.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please have your tanks completely full of fuel before 23:00 CST, Wednesday diesel prices will jump UP 17.5 cents and Gasoline will go UP 8 Cents  ~ Be Safe

 

NMEX Crude     $ 75.39 UP $2.2200

NYMEX ULSD    $3.0922 UP $0.1237

NYMEX Gas      $2.1609 UP $0.0799

NEWS

The 622,000 b/d Keystone pipeline running from Alberta, Canada into the US Midwest has been halted for almost a week already after a 14,000-barrel oil spill in Kansas. 

* Market differentials of Canada’s heavy Western Canadian Select have fallen some $5 per barrel since the outage, currently trading at a -$30/barrel discount to WTI as the off-take pressure grows on Canadian producers. 

* The Keystone pipeline has leaked almost 26,000 barrels of oil since 2010, the most of any other pipeline in the given period.

* Keystone’s extension into the Marketlink pipeline system towards Texas has allowed Canadian producers of heavy crude to export their barrels from Gulf Coast terminals, with outflows reaching some 300,000 b/d recently, up until the oil spill. 

Tuesday, December 13, 2022

The US consumer price index increased by 7.1% year-on-year in November, a better-than-expected result that breathed some life into the market. Yet even with Brent testing the $80 per barrel threshold, news of China postponing its closed-door Central Economic Conference (where some had expected an announcement regarding the easing of its Covid policy) and of clinics swamped by long queues of people exhibiting coronavirus symptoms doesn’t bode well for a quick demand recovery.

China Wants More Oil Trade in Yuan. China’s President Xi Jinping has called on Arab leaders to buy oil and gas in Chinese yuan, calling their countries natural partners, as last week’s China-Arab League meetings overshadowed US President Biden’s visit five months ago.

IEA Warns of Gas Shortage in Europe. The International Energy Agency has warned that the EU could face a gas shortage of up to 30 bcm in 2023 if Russia cuts its remaining pipeline deliveries and Chinese demand rebounds from lockdown-induced lows.

Are We Nearing a Fusion Energy Breakthrough? The US Department of Energy is to announce Tuesday that scientists from the Lawrence Livermore National Laboratory in California have achieved a net energy gain from fusion energy for the first time in history.

Chinese Shipyards Enjoy LNG Bonanza. With the order book of South Korean shipyards swamped by Qatar’s expansion plans, Chinese docks have ratcheted up the market share of new LNG orders massively as three shipyards won nearly 30% of this year’s record 163 orders for new LNG carriers.

IMF Sees Iraq with Lower Oil Dependency. The International Monetary Fund (IMF) has called on Iraqi authorities to use this year’s windfall profits towards economic diversification, with the country’s GDP expected to grow 8% in 2022 and the fiscal breakeven level dropping to $66 per barrel.

France’s Nuclear Generation Saves the Day. Electricity generation from France’s nuclear reactors surpassed the 40 GW mark for the first time since March 2022 as the country confronted the Europe-wide cold snap, with prolonged corrosion repairs gradually coming to an end.

EU Members Seek to Soften Methane Rules. Only a few weeks after the COP27 summit, it was reported that several EU countries are trying to weaken the bloc’s pledge to cut methane emissions in the oil and gas sector, with Romania and Hungary claiming it would be too difficult to end routine gas flaring immediately.

Investors Still Flee Oil Futures. For the fourth consecutive week, investors have been reducing their positions in key oil futures and options contracts, selling the equivalent of 30 million barrels in the week ending December 6, bringing the total sell-off tally to 221 million barrels over the four past weeks.

WTO Finds US Steel Duties Violate Trade Rules. A World Trade Organization panel found that the US import duties of 25% on steel and 10% aluminum established in March 2018 by then-President Trump are inconsistent with international trade obligations and recommended scrapping them.

Saudi Arabia Doubles Down on Giant Gas Field. Saudi Aramco (TADAWUL:2222) is reportedly seeking equity investors that would help fund its 110 billion drive to develop the unconventional resources of the giant 200 TCf Jafurah gas field, expected to become a blue hydrogen feed by 2030.

UK Puts Coal Plants on Alert. The UK National Grid has asked two contingency coal-fired power plants to be ready to send more electricity to the grid if needed as the Europe-wide cold snap led to an increase in demand amidst lower wind generation rates.

Argentina to Connect Vaca Muerta to Brazil. Argentina has secured financing of $689 million from the Brazilian state development bank BNDES to build a new gas pipeline that would supply natural gas from the vast Vaca Muerta shale play northwards to Brazil.

Lithium Toxicity Issue Saps Europe Production Plans. As the European Commission’s scientific arm recommended that Brussels classify lithium as toxic, stymieing potential production across the continent, the EU’s executive arm has pushed back the decision on the issue into 2023.

(OilPriceNews)

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please fuel as needed tonight, Tuesday PLEASE keep your tanks topped and before 23:00 CST have tanks completely full of fuel due to Wednesday prices will go UP 17 to 18 cents~Be Safe

NMEX Crude     $ 73.17 UP $2.1500

NYMEX ULSD    $2.9685 UP $0.1748

NYMEX Gas      $2.0826 UP $0.0265

NEWS

Traders swooped in to buy oil at the lowest price this year, as markets digested the fact that a key North American crude pipeline remains shut with no timeline for reopening.

West Texas Intermediate rose 3% to settle above $73 a barrel. Oil rallied Monday after prices plunged 11% last week to settle at the lowest price in 2022. Last week, crude closed below its nine-day relative strength index for three days, breaching a technical indicator that suggests oil is oversold and presents a good buying opportunity for some traders.

Meanwhile, TC Energy Corp. is continuing recovery efforts at its shuttered Keystone pipeline, that links fields in Canada to refiners on the US Gulf Coast. A date for a restart hasn’t yet been set, according to a statement on Sunday. Refined products also recovered this morning, with gasoline futures rising 1.2% after touching a new low for the year overnight.

Crude is on track for its first back-to-back quarterly decline since mid-2019 as the demand outlook sours and thin liquidity exacerbates price swings into the year-end. December was expected to be a rocky month with sanctions on Russian oil shipments taking effect, but the weakening demand outlook — led by risks to global growth — has weighed on prices.

As the oil market has softened in recent days, both Brent and WTI have at times traded in contango. The bearish market structure indicates plentiful crude supply over the short term. Russia’s ability to export crude oil without as many disruptions as traders anticipated has left markets softer, Francisco Blanch, head of commodity and derivatives research at Bank of America said in a Bloomberg Television interview.

“We have a bit of a soft patch right here; contango is happening but it is very front-loaded,” said Blanch. “You have a modest surplus you need to adjust for, and that’s exactly what the market has done.”

PRICES:
  • WTI for January delivery rose $2.15 to settle at $73.17 a barrel in New York.
  • Brent for February settlement rose $1.89 to settle at $77.99 a barrel.

Following the imposition of the price cap on Russian crude and related curbs, a backlog of tankers waiting to haul oil through Turkey’s vital shipping straits built up amid a dispute over insurance cover. That now appears to be clearing, with a port agent tally on Sunday showing 19 tankers waiting to pass through the Bosphorus and Dardanelles straits, down from a total of 27 on Saturday.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please have your tanks completely full of fuel tonight before 23:00 CST, Saturday prices will go UP 10 cents but Sunday we’ll an 8 to 9 cents correct DOWN ~ Be Safe

NMEX Crude     $ 71.02 DN $.4400

NYMEX ULSD    $2.7937 DN $.0861

NYMEX Gas      $2.0561 UP $.0070

NEWS

Oil posted the biggest weekly loss since April as low liquidity fueled big price swings and as restarts for key pipelines alleviated supply concerns.

West Texas Intermediate briefly fell below $71 a barrel to the lowest price in a year. The US benchmark — along with Brent crude — has given up all of its gains for the year and slumped 11% this week. Thin trading has exacerbated price fluctuations, with volatility rising again Friday on stronger-than-expected US inflation data.

TC Energy Corp. is planning to restart one leg of the shuttered Keystone oil pipeline beginning Saturday, following a 14,000-barrel crude spill, according to people familiar with the matter. Shell Plc has restored normal operations to a 20-inch segment of the Zydeco crude system after running it at reduced rates since November. Earlier in the week, there were some concerns the Keystone disruptions would put a dent into crude stockpiles in Cushing, Oklahoma, the nation’s largest storage hub.

“Crude can’t find a bid as Keystone looks to come back online in short order,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “For now, every headline is being seen through a bearish lens and buyers are not motivated get involved until they see demand signals improving.”

Friday’s WTI decline comes on the back of a small rally earlier in the day triggered by Russia President Vladimir Putin saying the country may cut production in response to the G-7 cap on the price of its crude.

“Commentary from Russia about cutting production is perceived as tactic to talk up price as opposed to having a meaningful impact on supply,” Babin said.

Crude is now on track for its first back-to-back quarterly decline since mid-2019 on a souring economic outlook as central banks tighten monetary policy, though Treasury Secretary Janet Yellen still sees the US avoiding a recession. Traders are also assessing the fallout from a price cap on Russian oil, which has led to a jam of tankers in Turkish waters due to a standoff over insurance.

PRICES:
  • WTI for January delivery fell 0.6% to close at $71.02 a barrel in New York.
  • Brent for February settlement slid 5 cents to $76.10 a barrel, after falling as much as 1.4%

The market continues to signal ample near-term supply, with the prompt spread — the difference between the two nearest contracts — for both WTI and Brent holding in contango. The global benchmark was about 47 cents a barrel in contango, compared with $1.44 in backwardation a month earlier.

Have a Great Day,

 Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please partial fill only tonight due to Friday’s 13 cent drop in prices ~ Be Safe

NMEX Crude     $  71.46 UP $.5500

NYMEX ULSD    $2.8798 UP $.0993

NYMEX Gas      $2.0491 DN $.0281

NEWS

The shutdown of a key North American pipeline after an oil spill in Kansas roiled the flow of crude supplies across the US at a time when a fragile supply situation has rocked markets with volatility.

TC Energy Corp declared force majeure on its Keystone oil pipeline system after a spill into a Kansas creek, according to people familiar with the matter. The contract clause is used when a company encounters an unforeseen “act of God” and typically indicates that supply agreements are about to go unfulfilled. The massive crude pipeline, which can carry more than 600,000 barrels a day, was shuttered Wednesday night.

Keystone is a major conduit linking oil fields in Canada to refiners in the US Gulf Coast, and any prolonged disruption will almost certainly put a dent into US crude inventories. Already stockpiles in Cushing, Oklahoma, the nation’s largest storage hub, are at their lowest since July — and at multi-year lows seasonally. Availability has been tight after refineries ramped up processing in response to strong gasoline demand.

West Texas Intermediate oil futures briefly jumped more than 4%, topping $75 per barrel, before reversing the gains. Physical crude prices on the Gulf Coast also briefly surged on expectations of tighter supplies following the outage. By the end of the trading day on Thursday, prices were back in negative territory as traders bet that at least one segment of the line would restart soon.

The impact to consumers could be limited. A shorter disruption could probably be absorbed by the market after inventories of US gasoline have recently been built back up. Still, a protracted, severe outage for the pipeline would pull gasoline prices higher just as consumers were starting to feel some relief from surging fuel costs that had become a major domestic political issue.

The Keystone system begins in western Canada and runs to Nebraska, where it splits. One branch heads east to Illinois and the other runs south through Oklahoma and onward to America’s refining hub on the Texas Gulf Coast. 

The spill follows several other leaks to hit Keystone in recent years. The system was shut in October 2019 after it spilled thousands of barrels of oil in North Dakota.

Traders said they expect the latest outage to last upwards of a week since it affects a waterway, which can potentially complicate cleanup efforts. Calgary-based TC didn’t immediately provide an estimate of how much crude leaked or a timeline for a restart.

Investigation ‘Ongoing’ 

The Nebraska Department of Environment and Energy confirmed the incident occurred in Kansas. The Pipeline and Hazardous Materials Safety Administration, a federal regulator, said it deployed personnel to the site of an oil leak near Washington, Kansas, on Wednesday.

“PHMSA’s investigation of the cause of the leak is ongoing,” the agency said.

The impact on US refineries that rely on crude from Keystone will depend on how long the full line or each segment is down. If the segment feeding the Midwest north of where the spill occurred comes online soon, there may not be much impact for refiners in the region.

Energy Aspects Ltd’s head of North American crude, Jenna Delaney, said the main concern is for the refineries near Cushing and those in Kansas that processed as much as 30% of the Canadian heavy sour crude this year from the Cushing storage hub.

“These refineries can’t pull any other heavy-sours aside from Canadian” whereas refiners along the US Gulf Coast can find other suppliers, Delaney said.

It’s likely the spread between Western Canadian Select (WCS), a heavy crude, and the benchmark West Texas Intermediate priced in Houston will “compress due to this outage,” Delaney said, adding that the differential could “easily” narrow “if this outage is going to be extended.”

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

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 30-years of Service Excellence”

www.FuelManagerServices.com

www.owneroperatoradvisoryservice.com 

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

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