Fueling Strategy: Please “KEEP YOUR TANKS TOPPED OUT” today/tonight, Saturday Prices will JUMP UP 11.5 Cents then Sunday look for another JUMP of 5 Cents~Be Safe

NMEX Crude      $ 78.01 UP $.6500

NYMEX ULSD     $2.8434 UP $.0480

NYMEX Gas       $2.2941 UP $.0297

NEWS

March WTI crude oil on Friday closed up +0.65 (+0.84%), and Mar RBOB gasoline closed up +3.48 (+1.52%). Crude oil and gasoline prices on Friday recovered from early losses and settled moderately higher, with crude posting a 2-month high and gasoline posting a 3-month high.  Crude prices shook off early losses and rallied Friday afternoon as Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck a UK oil tanker with a missile in the Gulf of Aden.  Crude prices on Friday initially moved lower as mixed global economic reports sparked concern about energy demand.

The escalation of geopolitical tensions in the Middle East supports crude prices.  The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea.  Earlier this month, the U.S. Navy advised vessels to avoid the southern Red Sea.  Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza.  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 after a Ukranian drone attack on Thursday damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.  Russia said Friday 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.

Friday’s global economic news was mixed for energy demand and crude prices.  On the negative side, German Feb GfK consumer confidence unexpectedly fell -4.3 to an 11-month low of -29.7, weaker than expectations of an increase to -24.6.  Also,  Japan’s Nov leading index CI was revised lower by -0.1 to a 3-year low of 107.6 from the previously reported 107.7.  On the positive side, U.S. Dec personal spending rose +0.7% m/m, stronger than expectations of +0.5% m/m.

A decline in Russian crude oil exports is supportive of crude oil prices.  Tanker-tracking data from Vortexa monitored by Bloomberg shows the four-week average of refined fuel shipments from Russia fell to 2.62 million bpd in the four weeks to Jan 21, down -70,000 bpd from the prior week.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

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