After prices plummeted Friday without a clear catalyst, oil is trading higher this morning. Crude is trading at $56.63, up 83 cents.
Fuel is also trading higher today with diesel trading at $2.0214, up 2 cents. Gasoline prices are also higher in morning trading at $1.7530, up 2.3 cents.
Prices this morning are getting support from lower OPEC oil production and reduced export rates. Russia reported lower output on February, steeply cutting output to comply with OPEC agreements. Cuts reached 100 kbpd compared to the October base rate, an increase from the 50 kbpd cuts seen in January. In general, OPEC production seems to have been lower for the month, though we’ll wait for official data to confirm.
Winter Storm Alert
Winter Storm Scott brought heavy storms in the Northeast, shutting down highways over the weekend and causing fuel delivery delays. Delays have been seen in Pennsylvania, Massachusetts, New Jersey and New York. Fuel carriers are catching up on deliveries as they are able, but limited mobility are placing constraints on the supply chain. Please reach out to your Mansfield representative for more information about northeast fuel deliveries.