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Market Close: Dec 07 Down, Diesel DN 13.50 cents, Gas DN 7.19 cents

Fueling Strategy: Please fuel as needed this morning, tonight partial fill ONLY due to prices will fall another 8.5 cents Thursday then Friday look for a 13 cent drop in prices.  ~ BE Safe

NMEX Crude     $  72.01 DN $2.2400

NYMEX ULSD    $2.7805 DN $0.1350

NYMEX Gas      $2.0772 DN $0.0719

NEWS

It doesn’t take much to get oil prices moving lower these days, thanks to shrinking liquidity that’s sapped the life out of the market.

Both benchmarks have now erased all their gains for 2022. Prices on Wednesday headed for a fourth straight loss, with West Texas Intermediate trading near $72 a barrel and Brent dropping to the lowest in about a year. The market took another turn lower on signs of easing constraints for US fuel supplies and as risk-off sentiment gained momentum.

“There is literally no risk appetite to buy the dip in crude right now,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “This is just snowballing into outsize moves.”

With many traders poised to close out big positions as 2022 wraps up, Babin said that the the big question now is: Can anything “step in front of crude into last trading days of the year” to stem the losses?

Crude has so far stumbled into the final month of the year, with the US benchmark heading for the first back-to-back quarterly drop since mid-2019 as central banks tighten monetary policy. Concerns about the global growth outlook, alongside a soft physical market and falling liquidity have weighed on prices. Then on Wednesday, the Energy Information Administration reported that distillate and gasoline inventories had climbed, indicating weaker demand.

The market’s latest leg down came at a complex moment, with traders assessing the fall-out from Group of Seven curbs on Russian oil, including a price cap that’s meant to punish Moscow for the war in Ukraine.

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Loren R Bailey, President

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Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.