Market Close: March 10 UP, Diesel UP 10.4 Cents
Mar 10th, 2023 by loren
Fueling Strategy: Please fuel as needed today (prices down 5.5 cents), tonight “partial fill ONLY or better yet – Don’t fuel” due to Saturday prices will fall another 7 cents, Saturday it’ll be important for you to keep your tanks topped and full of fuel before midnight, Sunday prices will jump UP over 10 cents~Be SAFE
Fueling Strategy: For Gasoline Users – Please keep your tanks full of fuel, Saturday prices will jump UP 4 cents at the Speedway’s – Be Safe
NMEX Crude $ 76.68 UP $.9600
NYMEX ULSD $2.7729 UP $.1040
NYMEX Gas $2.6458 UP $.0407
NEWS
April WTI crude oil on Friday closed up +0.96 (+1.27%), and Apr RBOB gasoline closed up +4.07 (+1.56%).
Crude oil and gasoline prices Friday rebounded from 2-week lows and closed moderately higher on a slump in the dollar to a 2-week low. Crude oil also garnered support from Friday’s U.S. Feb unemployment report, which showed weaker-than-expected wage growth and an unexpected increase in the unemployment rate, reducing concern about a hawkish Fed.
In a bullish factor, Vortexa Monday reported that the amount of crude stored on tankers that have been stationary for at least a week fell -6.1% w/w to 80.8 million bbl in the week ended March 3.
A negative factor for crude was China’s announcement on Monday of a Chinese GDP growth target for 2023 of around 5%, below expectations of above 5%, and below last year’s target of around 5.5%, which was bearish for energy demand.
Indian buyers of Russian oil are struggling to obtain the crude as onerous demands from financiers wary of breaching Western sanctions are making it hard for Indian buyers to secure financing for their Russian oil purchases. The difficulty of funding the Russian oil purchases may force Indian buyers elsewhere to obtain crude supplies, which is bullish for oil prices.
Rising crude demand in India, the world’s third-largest crude consumer, is bullish for prices. India’s oil ministry predicts India’s oil-products consumption will climb by +4.9% y/y to a record 233.8 MT in the 12 months from April.
On February 1, the OPEC+ Joint Ministerial Monitoring Committee recommended keeping crude production levels steady as the oil market awaits clarity on demand in China and crude supplies from Russia. Goldman Sachs predicts that OPEC+ will only start to reverse its supply cuts, currently at about 2 million bpd, in the second half of this year when accelerating demand will tighten the market. OPEC crude production in February rose by +120,000 bpd to 29.24 million bpd.
Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of March 3 were +7.8% above the seasonal 5-year average, (2) gasoline inventories were -4.2% below the seasonal 5-year average, and (3) distillate inventories were -8.1% below the 5-year seasonal average. U.S. crude oil production in the week ended March 3 fell -0.8% w/w to 12.1 million bpd, which is only 1.0 million bpd (-6.9%) below the Feb-2020 record-high of 13.1 million bpd.
Baker Hughes reported Friday that active U.S. oil rigs in the week ended March 10 fell by -2 rigs to an 8-3/4 month low of 590 rigs, moderately below the 2-1/2 year high of 627 rigs posted on December 2. U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.
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