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Market Close: Feb 03 Up

Fueling Strategy: Please keep tanks topped tonight, Thursday prices will jump UP another 3 cents – The ramping UP of prices is due to anticipated Covid relief checks, oil suppliers reducing productions worldwide – This IS a classic squeeze play on the consumers to increase both Crude and finish product values. It’ll level out.
NYMEX Crude    $ 55.69 UP $.9300
NYMEX ULSD     $1.6905 UP $.0159
NYMEX Gas       $1.6486 UP $.0326
NEWS
Oil prices rose almost 2% on Wednesday and hovered near their highest levels in about a year, after government data showed U.S. crude stockpiles fell to their lowest since March, while OPEC+ maintained its supply cut agreement.Brent Crude rose 1.74% to $58.46 a barrel. The benchmark earlier hit $58.94 a barrel, its highest since last February.  WTI Crude crude settled 1.7% higher at $55.69 per barrel, after hitting a high of $56.33 earlier in the session, the highest level since Jan. 2020.

Both benchmarks’ backwardation, where contracts for near-term delivery are more expensive than later supplies, hit their highest in just over a year at around $2.30, indicating expectations of tighter supply. U.S. crude oil stockpiles fell last week to 475.7 million barrels, the Energy Information Administration said on Wednesday, their lowest since March. Refiner utilization rates, meanwhile, rose by 0.6 percentage points. “Refineries are back in business, which is supportive for crude,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. “On net, this is a supportive report.”

The market has been bolstered by deep supply cuts from the Organization of the Petroleum Exporting Countries and allies, which on Wednesday, maintained their oil output policy. The day before, a document seen by Reuters showed that OPEC+ expects the oil market to be in deficit throughout 2021, peaking at 2 million barrels per day in May. “Underpinning the bullish sentiment are tightening fundamentals. Ahead of today’s ministerial meeting, OPEC+ hinted that global oil stockpiles will decline below the five-year average by June,” PVM analysts said.

The market was also bolstered by news that Democrats in the U.S. Congress took the first steps toward advancing President Joe Biden’s proposed $1.9 trillion coronavirus aid plan without Republican support.

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.