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Market Close: Dec 26 Up

Fueling Strategy: Please fill as needed today/tonight, Wednesday PLEASE keep tanks completely full due to Thursday wholesale prices will jump UP 7 to 8 cents  – Be Safe Tonight
NYMEX Crude        $  59.97 UP $1.5000
NY Harbor ULSD   $2.0385 UP $0.0691
NYMEX Gasoline   $1.7866 UP $0.0243
NEWS

Oil prices surged to more than 2½-year highs Tuesday on reports that a pipeline explosion in Libya has disrupted a big chunk of the country’s crude supply. International benchmark Brent crude rose $1.81, or 2.8 percent, to $67.06, after hitting an intraday peak of $67.10, its highest level since May 2015. Meanwhile, U.S. Wet Texas Intermediate crudefutures jumped $1.50, or 2.6 percent, to $59.97, having traded as high as $60, the best level since June 25, 2015. The oil price spike occurred during thin trading between the Christmas and New Year’s holidays.

An explosion hit a pipeline that feeds Libya’s Es Sider terminal, causing the country to lose 70,000 to 100,000 barrels a day of production, Reuters reported, citing Libya’s National Oil Corporation and sources. Libya produced 973,000 barrels a day in November, according to OPEC’s latest monthly report. Supply to Es Sider has been disrupted in the past due to an ongoing conflict between rival factions in Libya. A military source told Reuters that armed men had blown up the pipeline. Libya is one of two OPEC members, along with Nigeria, that were exempt from a deal to cap production this year. Both countries have suffered oil supply outages related to internal conflicts.

The 14-member cartel, Russia and nine other exporting nations recently extended an agreement to keep 1.8 million barrels a day off the market to help shrink brimming stockpiles of crude around the world. That deal has helped to balance a glutted market, so supply disruptions are more likely to push up crude prices. Prices have been supported in recent weeks by another pipeline outage that carries U.K. North Sea Forties crude to market. The price impact has worn off in recent days as operator Ineos has signaled the pipeline will soon start moving oil again.

Have a Merry Christmas,
Loren R Bailey, President
Fuel Manager Services, Inc.
“Celebrating 25-years of Excellent Service”
Office: 479-846-2761
Cell: 479-790-5581
Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.