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Market Close: Feb 23 Mixed

Fueling Strategy: Please keep tanks topped today/tonight, Wednesday prices will jump UP 5.5 cents – Be Safe Today
NYMEX Crude    $ 61.67 DN $.0300
NYMEX ULSD     $1.8519 UP $.0011
NYMEX Gas       $1.8586 UP $.0169
NEWS
Oil prices were steady on Tuesday, trading close to more than year-long highs on signs that global coronavirus restrictions were being eased although concerns about the pace of a U.S. economic recovery kept gains in check.

Brent Crude was up 18 cents, or 0.28%, at $65.42 a barrel, still close to its highest levels since January 2020. WTI Crude settled 3 cents lower at $61.67 per barrel. Both contracts rose more than $1 earlier before retreating.

“Vaccine news is helping oil, as the likely removal of mobility restrictions over the coming months on the back of vaccine roll outs should further boost the oil demand and price recovery,” UBS oil analyst Giovanni Staunovo said. But, tempering the upbeat mood, the chair of the U.S. Federal Reserve, Jerome Powell, said the U.S. economic recovery remained “uneven and far from complete” and it would be “some time” before the central bank considered changing policies it had adopted to help the country back to full employment.

Commerzbank analyst Eugen Weinberg said the recent oil price rise was buoyed by upbeat price forecasts from U.S. brokers. Goldman Sachs expects Brent prices to reach $70 per barrel in the second quarter from the $60 it predicted previously, and $75 in the third quarter from $65 forecast earlier. Morgan Stanley, which expects Brent to reach $70 in the third quarter, said new COVID-19 cases were falling while “mobility statistics are bottoming out and are starting to improve”. Bank of America said Brent prices could temporarily spike to $70 per barrel in the second quarter.

In the United States, traffic at the Houston ship channel was slowly returning to normal after last week’s winter storm, although production was not expected to fully restart soon. Some U.S. shale producers forecast lower oil output in the first quarter. Stockpiles of U.S. crude oil and refined products likely declined last week, a preliminary Reuters poll showed on Monday, due to the disruption in Texas.

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.