Fueling Strategy: Please don’t fuel tonight, Wednesday AM wholesale prices will drop 9 cents – Be Safe Today!

NYMEX Crude $ 46.66 DN $.4400
NY Harbor ULSD $1.4708 DN $.0316
NYMEX Gasoline $1.3140 DN $.0271

NEWS
Oil futures settled lower Tuesday after a failed attempt to recoup some losses from a more than 5% drop a day earlier. Traders weighed supply-and-demand prospects on the back of the latest reports from the Organization of the Petroleum Exporting Countries and the International Energy Agency, as well as trade data from China. “The market is all over the place,” said Matt Smith, director of commodity research told MarketWatch. After a strong selloff Monday, he expected Tuesday’s earlier rebound to “be stunted by weak data out of China and a bearish-tilted IEA report—leaving crude to lick its wounds and consolidate.”

November West Texas Intermediate crude settled at $46.66 a barrel, down 44 cents, or 0.9%, on the New York Mercantile Exchange. It climbed to as high as $48.43, but also fell to as low as $46.60. Prices lost 5.1% on Monday for the largest single-day drop since Sept. 1. Meanwhile, November Brent crude lost 62 cents, or 1.2%, to $49.24 a barrel on the ICE Futures exchange. “The market psyche is gradually switching” from the current fundamentals of a heavily oversupplied market to ‘tomorrow’s prices today’—a market likely to eradicate the surplus by 2017, and at least endure thinner oversupplies in 2016,” Matthew Parry, senior oil analyst at the International Energy Agency, told Market Watch.

A report released Monday showed that oil production from OPEC rose 109,000 barrels a day in September to 31.57 million barrels a day. But OPEC also forecast that U.S. oil output will drop in 2016 for the first time in eight years. On Tuesday, a report from IEA said the market likely would remain oversupplied next year. It is “much the same story as before, but with a marginally more oversupplied forecast for 2016,” as the potential “call-on-OPEC”—what OPEC would have to do to balance the market—is curbed by 200,000 barrels a day for 2016, compared with last month’s report, said Parry. Still, a Platts survey Tuesday showed that OPEC oil output fell in September following a cut back in Saudi Arabia. Over in China, data showed that the country’s September crude-oil imports rose 1.4% year-over-year to 27.95 million tons, rising 8.8% year-over-year to 248.62 million tons in the first nine months of the year. Virendra Chauhan, an oil analyst at Energy Aspect, said “the rise in crude imports isn’t too impressive considering the broader prolonged imports decline.”

Oil traders will have to wait an extra day to see weekly updates on U.S. petroleum supplies, because of Monday’s Columbus Day holiday. The American Petroleum Institute will release its report on Wednesday, while the U.S. Energy Information Administration’s data are due out Thursday. Analysts polled by Platts forecast an increase of 1.8 million barrels in crude supplies for the week ended Oct. 9.