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Market Close: Jan 26 Down

Fueling Strategy: Please fill as needed today/tonight – Be Safe!
NYMEX Crude        $  45.15 DN $.4400
NY Harbor ULSD    $1.6398 DN $.0069
NYMEX Gasoline   $1.3167 DN $.0312
Reminder: For the BEST fuel additive (more parts per million of active ingredient) go www.FuelManagerServices.com then click on additive link –
NEWS

New York-traded oil futures ended lower Monday after shifting between gains and losses in the wake of an election win by Greek antiausterity party Syriza. Light, sweet crude for March delivery fell 44 cents, or 1%, to close at $45.15 a barrel on the New York Mercantile Exchange. Brent crude also declined, with the March contract declining 63 cents, or 1.3%, to $48.16 a barrel on London’s ICE Futures Exchange. T

While the U.S. dollar and dollar-denominated crude-oil futures often move inversely, both began to lose ground early Monday just as news broke that Greece’s Syriza party was projected to have won the general election there. While Syriza had been expected to garner a plurality of the vote, the margin of victory was larger than poll results published Friday by Reuters. Following reports of the outcome — which raised concerns that Greece could break the conditions of its international assistance and perhaps even leave the eurozone — Nymex’s crude dropped to its lowest point in the session. WTI futures on Friday fell 1.6% during the regular New York Mercantile Exchange session. Brent crude on Friday declined 0.6%.

Earlier Monday, the Organization of the Petroleum Exporting Countries’ Secretary-General Abdalla el-Badri said oil at $200 a barrel would be possible if producers don’t invest in new supply. Prices between $45 a barrel and $55 a barrel are likely the bottom, with a rebound likely “very soon,” he said, according to Reuters. Oil caught some tailwind from Badri’s comments although the “his broader remarks also included a mention of the current (1.5 million barrels a day) supply/demand surplus,” said Tim Evans, an analyst with Citi Futures. The longer-term risk that lack of investment could send prices to $200 per barrel are likely “a hypothetical scenario at this point,” Evans said. “Particularly given the shorter lead times for shale oil investment, we think there would be quite a bit of supply available at significantly lower levels. And in the near term, the supply/demand surplus remains a cap on prices in our view.”

 

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.