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Market Close: June 25 Mixed

Fueling Strategy: Please partial fill ONLY today/tonight, Friday prices will drop 5.5 cents – Be Safe
NYMEX Crude    $ 38.72 UP $.7100
NYMEX ULSD     $1.1556 UP $.0048
NYMEX Gas       $1.1942 DN $.0022
NEWS
Oil prices rose about 2% in a volatile session on Thursday, buoyed by signs of a marginal improvement in the U.S. economy and a tepid rise in fuel demand, but price gains were limited by rising cases of COVID-19 in some U.S. states. Brent Crude rose 74 cents, or 1.8%, to $41.05, after trading as low as $39.47. The global benchmark dropped 5.4% on Wednesday. WTI Crude settled 71 cents, or 1.87%, higher at $38.72 per barrel.

Road traffic in some of the world’s major cities in June had returned to 2019 levels, data provided to Reuters by location technology company TomTom showed. Oil prices fell early, then found support as data showed fewer Americans filed for unemployment benefits last week and orders for key capital goods rebounded in May. Still, the decline in jobless claims was less than analysts expected and other data supported expectations that second-quarter GDP could shrink at as much as a 40% annualized rate. To kick-start the world economy devastated by coronavirus, central banks have unleashed trillions of dollars in stimulus. “Part of the rebound here is the idea that all the stimulus measures that central banks and the world’s governments are pumping into the economy is going to have a positive impact on economic activity and that it will be supportive to demand,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. “The only roadblock is if the number of COVID-19 cases picks up and we have to reimpose shelter in place measures but I don’t think we can conclude that it’s in the cards yet.”

New infections have surged in U.S. states including Oklahoma, Texas and Florida. Australia posted its biggest daily rise in two months. Despite recent regional increases in U.S. infections, “vehicle traffic continues to improve, international flights re-gain ground, employees phase back to work and discretionary activity picks up,” said Michael Tran, managing director of energy strategy at RBC Capital Markets in New York. Still, investor worries about oil demand persisted a day after the International Monetary Fund predicted a deeper global recession than previously thought.

A record crude supply cut by the Organization of the Petroleum Exporting Countries and allies has kept the oil market much stronger than in April, when Brent hit a 21-year low below $16 a barrel and U.S. crude turned negative. Investors are waiting to see if the producers, known as OPEC+, extend their record cut beyond July.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
Office: 479-846-2761
Cell: 479-790-5581
“Serving the trucking industry since 1992”
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.