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Market Close: Dec 29 Up

Fueling Strategy: Please fuel as needed today/tonight but plan on Wednesday’s one penny drop – Be Safe
NYMEX Crude    $  48.00 UP $.3800
NYMEX ULSD     $1.4861 UP $.0063
NYMEX Gas       $1.3780 UP $.0173
NEWS
Oil rose on Tuesday as the United States moved toward expanding pandemic aid payments, which could spur fuel demand and which also encouraged investors to take on more risk in hopes of stronger economic growth. Brent Crude climbed 30 cents, or 0.6%, to $51.16 a barrel, and WTI Crude futures settled 38 cents, or 0.8%, higher at $48.

“We are seeing strength in the oil market on the back of progress with the U.S. stimulus package,” said Gary Cunningham, director of market research at Tradition Energy. The Democratic-led U.S. House of Representatives voted to meet President Donald Trump’s demand for $2,000 COVID-19 relief checks on Monday. The Republican-controlled Senate will still need to vote on the measure. Global shares rose for a fourth straight session on Tuesday on the U.S. stimulus hopes. Still, concerns over coronavirus lockdowns capped gains in the short-term.

A new variant of the virus in the United Kingdom has led to the reimposition of movement restrictions, hitting near-term demand and weighing on prices, while hospitalizations and infections have surged in parts of Europe and Africa. Oil prices could gain strength as vaccination programs around the world pick up steam next year, said Tony Headrick, energy market analyst at CHS Hedging LLC. “Optimism around vaccinations has the ability to overwhelm the concerns around coronavirus we are seeing,” he added.

A Jan. 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, also looms over the market. OPEC+ is tapering record oil output cuts made this year to support the market. The group is set to boost output by 500,000 barrels per day (bpd) in January, and Russia supports another increase of the same amount in February.

Money managers raised their net long U.S. crude futures and options positions in the week to Dec. 21, the U.S. Commodity Futures Trading Commission said on Monday.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
“Serving the trucking industry since 1992”
Office: 479-846-2761
Cell: 479-790-5581
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.”
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.