Fueling Strategy: Please partial fill only today/tonight, Wednesday AM wholesale prices should drop 5 cents but in light of the Colonial Pipeline explosion last night we’ll have to wait & see – Be Safe Today!!
NYMEX Crude $ 46.67 DN $.1900
NY Harbor ULSD $1.5169 UP $.0130
NYMEX Gasoline $1.4841 UP $.0646
NEWS
Oil fell on Tuesday, hitting one-month lows, as U.S. gasoline prices pared an early rally sparked by a pipeline blast and crude was also pressured by renewed doubts about whether OPEC will follow through with proposed output cuts.
The American Petroleum Institute (API) reported U.S. crude stocks rose by 9.3 million barrels in the last week. Analysts had forecast that U.S. crude stocks had increased by more than 1 million barrels last week after unseasonal declines in seven of the past eight weeks also weighed on crude. The API report came ahead of official government data on Wednesday.U.S. West Texas Intermediate (WTI) futures settled down 19 cents, or 0.4 percent, at $46.67 a barrel, after a near-4 percent drop on Monday. They were lower after the settle following the API release.Brent January crude futures were down 64 cents, or 1.3 percent, at $47.97 a barrel by 4:50 p.m. ET (2050 GMT). They fell by nearly 3 percent the day before in their biggest one-day drop since Sept. 23. Crude was up earlier, boosted as the U.S. dollar slid, making dollar-denominated oil cheaper for users of other currencies.
Crude was also helped by a gasoline rally after Colonial Pipeline Co shut its main gasoline and distillates pipelines following an explosion in Alabama. Gasoline futures jumped 13 percent, then pared gains on news Colonial had reopened another gasoline line.”Oil rode up at first on the Colonial pipeline news, but that effect has faded,” said John Kilduff, partner at New York energy hedge fund Again Capital.”All attention is back on OPEC’s failure thus far to put together a convincing production cut plan, and the possibility of higher U.S. crude stocks from here.”Crude prices rallied about 15 percent over a three-week span after the Organization of the Petroleum Exporting Countries proposed on Sept. 27 its first production cut in eight years to reign in a global oil oversupply. Brent hit one-year highs and WTI 15-month peaks in early October as OPEC kingpin Saudi Arabia talked up the plan, inviting non-member producers such as Russia to make cuts too.
In the past two weeks, however, a growing number of OPEC member have said they were unwilling or unable to cut, casting doubts on what the group could do when it meets on Nov. 30 in Vienna.”Notwithstanding day-to-day rebounds, the oil rally since late September on the notion of OPEC cuts has been almost wiped out,” said David Thompson, executive vice-president at Powerhouse, a commodities-focused broker in Washington.
The pipeline closure drove up gasoline prices at the pump in the U.S. Southeast and on futures markets. The 5,500-mile (8,850-km) Colonial Pipeline is the largest U.S. refined products pipeline system and transports gasoline, diesel and jet fuel from the U.S. Gulf Coast to the New York Harbor area. The pipelines that shut run from Houston to Greensboro, North Carolina.