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Market Close: June 23 Up

Fueling Strategy: Please fill as needed today/tonight – Be Safe!
NYMEX Crude       $  61.01 UP $.6300
NY Harbor ULSD   $1.9112 UP $.0418
NYMEX Gasoline  $2.0766 UP $.0469
NEWS

Oil futures settled near a two-week high on Tuesday, with analysts attributing the bounce to technical price triggers, expectations for a weekly decline in U.S. crude supplies and a U.S. plan to help Europe defend against security threats, which highlighted U.S. tensions with Russia.

August crude tacked on 63 cents, or 1 %, to settle at $61.01 a barrel on the New York Mercantile Exchange after posting losses earlier in the session to tap an intra day low of $59.55. The settlement was the highest settlement for a most-active contract since June 10. August Brent crude on London’s ICE Futures exchange added $1.11, or 1.8%, to $64.45 a barrel — the highest settlement since about June 12.

Phil Flynn, senior market analyst at Price Futures Group, said oil likely found support from news that the U.S. will contribute weapons, aircraft and forces to help Europe defend against security threats, including Russia, which is among the world’s largest oil producers. Defense Secretary Ash Carter, however, was quoted as saying “we do not seek a cold, let alone a hot war with Russia.”

Oil traders also took positions ahead of upcoming weekly petroleum-supply data. The American Petroleum Institute will issue its report late Tuesday, while Energy Information Administration follows with its own data early Wednesday. Analysts polled by Platts expect to see a decline of 2.3 million barrels in crude supplies for the week ended June 19. Tyler Richey, co-editor of The 7:00’s Report, attributed the turn higher for oil prices to technical moves with some overnight resistance levels for Nymex oil prices being broken early Tuesday so some “low time-frame shorts were forced to cover.” The climb, however, was “unwarranted fundamentally,” especially given the stronger U.S. dollar said Richey. Because oil is priced in dollars, fluctuations in the dollar can influence the price of crude.

Meanwhile, the oil market also digested data from China, the world’s second largest oil consumer. The preliminary HSBC China Manufacturing PMI rose to 49.6 in June, compared with a final reading of 49.2 in May. While the data for June showed a slight monthly improvement, a reading below 50 indicates a contraction.

 

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.