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Market Close: Feb 22 UP, Diesel UP $.0468, Gas UP $.0487

Fueling Strategy: IF possible, Please “PARTIAL FILL ONLY” today/tonight, Prices are down 7.5 cent BUT will continue to drop another 3 cents Friday ~ Be Safe

NMEX Crude      $ 78.61 UP $.7000

NYMEX ULSD     $2.7520 UP $.0468

NYMEX Gas       $2.3347 UP $.0487

NEWS

Crude oil futures rose Thursday amid signs of a tightening global market and as the geopolitical outlook in the Middle East remains uncertain. The WTI contract for April gained 70 cents, or 0.9%, to settle at $78.61 a barrel. The Brent Contract for April added 64 cents, or 0.77%, to settle at $83.67 a barrel. The price premium of the first month futures contracts over the following months has increased in recent weeks, according to UBS strategist Giovanni Staunovo. A premium for immediate versus later delivery is typically a sign that the oil market is tightening, Staunovo wrote in a note to clients Thursday. 

The market may be tightening due to winter storms in North America last month that knocked out 1.4 million barrels per day of global crude production, Staunovo wrote. The weather-related disruptions happened at the same time India’s oil demand rose 8.2% year over year in January. Meanwhile, compliance with OPEC+ production cuts has increased with exports down about 900,000 barrels in February, the lowest level since August, according to Staunovo. “We retain a modestly positive outlook as we expect the oil market to remain slightly undersupplied this year,” Staunovo wrote. 

In the U.S., commercial crude stockpiles rose by 3.5 million barrels last week while total inventory including finished products was largely flat, according to the Energy Information Administration. U.S. stockpiles have increased in recent weeks as the refinery utilization rate has dropped.

The geopolitical outlook in the Middle East remains uncertain as the U.S. works toward a cease-fire in Gaza while tensions escalate on the Israel-Lebanon border and in the Red Sea. Israel War Cabinet member Benny Gantz said Wednesday that efforts to “promote a new outline” to secure the release of hostages held in Gaza “indicate the possibility of moving forward.”

White House Middle East envoy Brett McGurk will meet with Israeli Prime Minister Benjamin Netanyahu Thursday to discuss efforts to free hostages held by Hamas. A temporary cease-fire in exchange for releasing hostages in Gaza would potentially reduce the risk of the conflict engulfing the Middle East and disrupting crude supplies. But Israel has launched repeated strikes against Hezbollah targets in Lebanon in recent days, and Houthi militants in Yemen continue to attack shipping in the Red Sea. 

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

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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.