Fueling Strategy: Please “FUEL AS NEEDED” today/tonight ~ Please Be Safe

NMEX Crude      $ 78.18 DN $1.0100

NYMEX ULSD     $2.7315 DN $0.0751

NYMEX Gas       $2.2774 DN $0.0586

NEWS

March WTI crude oil on Tuesday closed down -1.01 (-1.28%), and Mar RBOB gasoline  closed down -5.86 (-2.51%). Crude oil and gasoline prices on Tuesday gave up overnight gains and posted moderate losses.  Crude fell back from a 3-1/2 month high Tuesday as weakness in stocks undercut economic optimism and was negative for energy demand and crude prices.  Crude initially moved higher Tuesday after the dollar index dropped to a 2-week low.  Also, oil prices have support from concerns about the possible escalation of the Israel-Hamas war to Lebanon and attacks on commercial ships in the Red Sea by Yemen’s Houthi rebels. Weakness in the crude crack spread is bearish for oil prices as the crack spread Tuesday fell to a 5-week low.  The weaker crack spread discourages refiners from purchasing crude oil and refining it into gasoline and distillates.

Global economic news Tuesday was mixed for energy demand and crude prices.  On the negative side, U.S. Jan leading indicators fell -0.4% m/m, weaker than expectations of -0.3 % m/m and the fifteenth consecutive monthly decline.  Conversely, Eurozone Dec construction output rose +0.8% m/m, the largest increase in 10 months. 

Crude prices are supported by concern that the Israel-Hamas war will widen to Lebanon after the leader of Hezbollah said it would retaliate against Israel and hit “not just army sites” in Israel after Israel attacked positions and killed civilians in Lebanon.  Hezbollah and Israel have traded fire almost daily since the Israel-Hamas war erupted on Oct 7.  Also, the U.S. and UK have engaged in airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  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 from Ukrainian drone attacks on Russian refineries and oil storage facilities that have curtailed Russian fuel exports.  On Feb 3, a drone attack by Ukraine damaged Russia’s Lukoil PJSC facility in Volgograd, which processed 289,000 bpd of crude oil in January, or more than 5% of Russia’s total crude processing volume.  On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said on Jan 26 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 Russian crude exports in the week to Feb 11 fell about -290,000 bpd from the prior week to 3.49 million 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