Market Close: Jan 05 Slightly Up
Jan 5th, 2023 by loren
Fueling Strategy: For Diesel Users – Please partial fill ONLY tonight or better yet wait to fuel until Friday AM when prices will continue to fall another 11.46 cents ~ Be Safe Today
Fueling Strategy: For Gasoline Users – Please fuel as needed tonight, gasoline prices Friday will remain flat to up less than a penny ~ Be Safe
NMEX Crude $ 73.67 UP $.8300
NYMEX ULSD $2.9723 UP $.0004
NYMEX Gas $2.2671 UP $.0079
NEWS
Oil prices rose around 1% on Thursday after posting the biggest two-day loss for the start of a year in three decades with U.S. data showing lower fuel inventories providing support and economic concerns capping gains.
Big declines in the previous two days were driven by worries about a global recession, especially following weak short-term economic signs in the world’s two biggest oil consumers, the United States and China.
U.S. distillate inventories fell more than expected as a winter storm gripped the United States at the end of December, data from the U.S. Energy Information Administration showed on Thursday.
U.S. gasoline stocks fell 346,000 barrels last week, the Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 486,000-barrel drop.
Distillate stockpiles, which include diesel and heating oil, fell 1.4 million barrels in the week, versus expectations for a 396,000-barrel drop, the EIA data showed.
Supporting prices earlier in the session was a statement from top U.S. pipeline operator Colonial Pipeline, which said its Line 3 had been shut for unscheduled maintenance with a restart expected for the products line on Jan. 7. Tamas Varga of oil broker PVM said the price rebound early in the session was due to the pipeline shutdown and added: “There is no doubt that the prevailing trend is down; it is a bear market.”
Reflecting near-term bearishness, the nearby contracts of the two benchmarks traded at a discount to the next month, a structure known as contango. On Wednesday, figures showing U.S. manufacturing contracted further in December pressured prices, as did concerns about economic disruption as COVID-19 works its way through China, which has abruptly dropped strict curbs on travel and activity.
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