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Market Close: March 02 UP

Fueling Strategy: Please fuel as needed today/tonight – Be Safe Today
NYMEX Crude    $ 46.75 UP $1.9900
NYMEX ULSD     $1.5287 UP $0.0514
NYMEX Gas       $1.5396 UP $0.0568
NEWS
Oil prices rose on Monday, reversing an earlier fall to multi-year lows as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the coronavirus outbreak. Brent Crude rose 4.3%, or $2.20, to trade at $51.87 per barrel.  WTI Crude gained $1.99, or 4.45%, to settle at $46.75 per barrel.  It was the first gain for both benchmarks after six sessions of losses triggered by coronavirus worries. The virus, which originated in China, has killed nearly 3,000 people and roiled global markets as investors brace for a steep knock to world growth. Equities underwent their biggest rout since the 2008 financial crisis last week although European and Asian shares steadied on Monday. The scale of losses last week led financial markets to price in policy responses from the U.S. Federal Reserve to the Bank of Japan, which indicated on Monday it would take necessary steps to stabilise financial markets. “The comments of Russian President Vladimir Putin, that Russia will keep cooperating with OPEC and its allies, are also helping ahead of the important oil producer meetings at the end of this week,” UBS oil analyst Giovanni Staunovo said.

Data released over the weekend by China, the world’s top energy consumer, dragged on oil prices earlier in the session. Factory activity in the country shrank at the fastest pace ever in February, underscoring the colossal damage from the coronavirus outbreak on its economy. However, several key members of the Organization of the Petroleum Exporting Countries (OPEC) are mulling an additional production cut in the second quarter, with fears the virus outbreak will erode oil demand. The previous proposal was for an additional output cut of 600,000 bpd. Russian Energy Minister Alexander Novak said on Monday that Moscow is evaluating the smaller oil production cut proposal made by OPEC+, adding it had not received a proposal for deeper cuts.

OPEC oil output fell in February to the lowest in over a decade as Libyan supply collapsed due to a blockade of ports and oilfields and Saudi Arabia and other Gulf members overdelivered on a new production-limiting accord, a Reuters survey found. Oil prices have fallen more than 20% since the start of the year despite OPEC and its allies including Russia, a grouping known as OPEC+, curbing oil output by 1.7 million bpd under a deal that runs to the end of March. “Inaction by OPEC+ would likely trigger another potentially severe bout of selling,” analysts at Fitch Solutions have said. They said that although current prices would incentivize Russia to agree to further output cuts, they would likely be of a short duration, for example, three months, with the barrels brought immediately back to market thereafter.

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.