X

Market Close: June 01 Down

Fueling Strategy: Please fuel as needed today/tonight, Be Safe
NYMEX Crude    $  35.44 DN $.0500
NYMEX ULSD     $1.0290 DN $.0076
NYMEX Gas       $1.0667 DN $.0118
NEWS
Oil futures steadied on Monday as rising U.S.-China tensions weighed on sentiment, but prices drew support from reports that OPEC and Russia were close to a deal extending output cuts. WTI Crude fell 5 cents, or 0.14%, to settle at $35.44 per barrel. Brent Crude futures rose 48 cents, or 1.3%, to settle at $38.32 per barrel.

Investors turned cautious after China warned of retaliation on U.S. moves over Hong Kong. China has asked its state-owned firms to halt purchases of soybeans and pork from the United States, two people familiar with the matter said, after Washington said it would eliminate special U.S. treatment for Hong Kong to punish Beijing. “The possibility of heightened tensions does pose a risk for the recent rally in oil prices,” said Harry Tchilinguirian, head of commodity research at BNP Paribas. Economic concerns and questions about fuel demand recovery also weighed on oil futures. Manufacturing data on Monday showed that Asian and European factories were struggling as government-imposed lock downs tempered demand.

Prices found some support after news that the Organization of the Petroleum Exporting Countries and Russia, known as OPEC+, were moving closer to a compromise on extending oil output cuts and were discussing rolling over the curbs one to two months. Algeria, which holds the rotating OPEC presidency, has proposed that OPEC+ hold a meeting on June 4 rather than the previously planned June 9-10.

Stockpiles at Cushing, Oklahoma, fell to 54.3 million barrels in the week to May 29, traders said, citing a Genscape report on Monday. Bank of America said Monday it believed that North American oil shut-ins peaked in May. “Oil prices have strengthened to levels where shutting-in no longer makes sense and should actually encourage producers to quickly restore production,” according to a BofA Global Research report.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
Office: 479-846-2761
Cell: 479-790-5581
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.