August 21 Fueling Strategy: Please “FUEL AS NEEDED TODAY/TONIGHT” prices are down 6.5 cents today, Thursday prices will be slight down to no change ~ Be Safe Today!
NYEX Crude $ 74.04 DN $.3300
NYMEX ULSD $2.2632 DN $.0003
NYMEX Gas $2.2563 DN $.0075
NEWS
Sep WTI crude oil Tuesday closed down -0.33 (-0.44%), and Sep RBOB gasoline closed down -0.75 (-0.33%).
Crude oil and gasoline prices Tuesday fell moderately, with crude posting a 1-1/2 week low and gasoline falling to a 6-1/2 month low. Hopes for a cease-fire deal between Israel and Hamas took some risk premium out of crude prices. Also, energy demand concerns in China are undercutting crude prices. Losses in crude were limited Tuesday after the dollar index tumbled to a 7-1/2 month low.
Concern about energy demand in China, the world’s second-largest crude consumer, is bearish for oil prices. China’s steel production in July fell -9% y/y to 82.94 MMT, the lowest this year, which signals weak industrial and building demand and weakness in China’s economy.
Signs of weaker US gasoline demand have prompted several US refiners to reduce refining operations, a bearish factor for crude prices. Marathon Petroleum, the owner of the largest US refinery, said it plans to cut its refining capacity rate to 90% this quarter, the lowest for a Q3 since 2020. Also, PBF Energy said it was cutting its refining capacity utilization rate to a three-year low, and Phillips 66 said it would cut its capacity rate to a two-year low.
Crude prices have support from fears of an attack by Iran against Israel in response to last month’s assassination of a Hamas leader by Israel in Iran, which could escalate the conflict in the Middle East and disrupt the region’s crude oil supplies.
Israel’s military continues to conduct operations in Gaza, and there is the risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran. Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.
Have a Great Day!
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
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Aug 23 – Out of Office after 15:00
Aug 30 – Out of Office after 15:00
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As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!
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