Market Close: Nov 4 Down
Nov 4th, 2014 by loren
Fueling Strategy: Please partial fill today/tonight, Wednesday AM wholesale prices will drop 2 cent then Thursday look for a 5 cent drop – Be Safe
DON’T FORGET TO BUY YOUR ADDITIVE:
www.fuelmanagerservices.com then click on buy-additive
www.fuelmanagerservices.com then click on buy-additive
NYMEX Crude $ 77.19 DN $1.5900
NY Harbor ULSD $2.4427 DN $0.0472
NYMEX Gasoline $2.0780 DN $0.0396
NEWS
Crude-oil prices finished Tuesday at their lowest in three years, struggling in the aftermath of Saudi Arabia’s decision to alter oil prices sold to U.S. and Asian buyers.
Light, sweet crude futures for delivery in December fell $1.59, or 2%, to settle at $77. 19 a barrel on the New York Mercantile Exchange. That was the lowest settlement for a front-month contract since Oct. 4, 2011. Oil has ended lower for four straight sessions, down 6.1% over the period. December Brent crude settled at a four-year low. The December contract fell $1.96, or 2.3%, to end at $82.82 a barrel on London’s ICE Futures exchange. That was the lowest settlement for Brent since Oct. 21, 2010. Brent has also closed lower for four sessions in a row, losing 5% during the period. Saudi Arabia’s move on Monday was viewed as a way to keep itself competitive amid tanking oil prices and a threat to U.S. domestic producers. It was also taken as a sign OPEC would not move to cut production when it meets in three weeks in Vienna.
A output cut would prevent oil prices to fall further. Putting further pressure on oil was news that the European Commission cut its growth forecasts for the 18-country eurozone.
“News that Saudi has cut its asking price to customers in the US suggests even the largest OPEC producer is now worried about its market share. This does not bode well for the future of the cartel,” said Fawad Razaqzada, technical analyst at FOREX.com in a note. Saudi Arabia, the world’s top crude exporter, adjusted prices for its December cargos on Monday, lowering its price differentials for sales to the U.S. but raising the differentials for its Asian customers. While the price adjustments were not as severe as the cuts for November, the lowering of prices for the U.S. market was interpreted by the market as stiffer competition against U.S. domestic crude production, traders said.