Mansfield supplies over three billion gallons of fuel per year to end users (fleet operators) and others. Though they could use the Week in Review and other commentaries to talk their book we've never seen that happen. They are one of the big dogs for a reason and one of our go-to sites when diesel starts popping..
From Mansfield, Feb. 9:
Oil prices experienced a volatile week, influenced by ongoing geopolitical factors and supply concerns. This morning, crude traded slightly lower, retaining most of the gains from the previous day, and is poised to conclude the week with an increase of approximately $4 per barrel.
Earlier in the week, the second-largest oil-processing facility in Russia’s Black Sea region was targeted in a drone strike, leading to a fire that lasted for two hours. These attacks are part of a series targeting Russian refineries and fuel-storage facilities, contributing to supply concerns. Throughout the week, escalating geopolitical tensions intensified the situation. Israeli forces continued airstrikes on Gaza, rejecting a ceasefire proposal, which fueled concerns about prolonged conflict in the Middle East.
Additionally, Ukraine launched drone attacks on oil refineries in southern Russia, resulting in further supply disruptions and refinery fires. In parallel, the United States imposed sanctions on firms and a tanker for violating price caps on Russian oil, adding another layer of complexity to the market dynamics. These events collectively pushed oil prices higher, with Brent crude reaching $81.47 per barrel, while U.S. West Texas Intermediate (WTI) hovered at $76.16 per barrel.
Amidst geopolitical chaos, market dynamics played a crucial role in shaping oil prices. In the US, the Department of Energy’s plan to purchase 3 million barrels of crude for the Strategic Petroleum Reserve signaled potential tightening in near-term US balance expectations. Additionally, OPEC+ reported a significant decline in crude output by 340,000 barrels per day in January, marking the largest monthly drop in six months. However, this reduction fell short of the pledged output cuts of 700 thousand barrels per day.
In January, OPEC produced 26.49 million barrels per day collectively, down from 26.80 million barrels per day in December, with core group output slipping by 310,000 barrels per day. Meanwhile, Russia-led allies saw their oil output fall by 30,000 barrels per day to 14.72 million barrels per day.
Economic indicators from major economies also influenced market sentiment. In the United States, wholesale inventories increased by 0.4% in December, in line with expectations, indicating stability in the supply chain. Jobless claims declined by 9,000 to 218,000 in the week ended February 3, roughly in line with expectations, reflecting a stable labor market.
Meanwhile, in China, the People’s Bank of China (PBOC) reiterated its supportive stance in its Q4 monetary policy report, maintaining an easing bias to support economic growth. The PBOC highlighted the need to balance bond issuance and loan extension and pledged to provide sufficient liquidity to facilitate government bond issuance. These policy measures are aimed at stimulating credit growth and supporting economic recovery in China....
....MUCH MORE, chart (mini) mania
They also deliver and comment on natural gas: "Natural Gas News – February 8, 2024"