Fueling Strategy: Please fill as needed today/tonight, plan on Saturday AM wholesale prices will drop another 1.5 cents the Sunday AM look for an “8 cent drop” – Be Safe Today!
NYMEX Crude $ 35.62 DN $1.1400
NY Harbor ULSD $1.1456 DN $0.0795
NYMEX Gasoline $1.2815 UP $0.0013
NEWS
Oil futures ended below $36 a barrel on Friday, holding ground at a nearly seven-year low to finish the week with a loss of roughly 11%—their largest weekly loss of the year. Brent crude also marked its lowest settlement since December 2008 as the International Energy Agency warned that the global crude-supply glut will continue to pressure prices next year.
Meanwhile, prices for natural gas finished below $2 per million British thermal units for the first time in more than three years. January West Texas Intermediate crude settled at $35.62 a barrel, down $1.14, or 3.1%, on the New York Mercantile. For the week, it lost 10.9%. That was the largest weekly loss since the week ended Dec. 12, 2014. WTI prices, which continue stand at their lowest levels since February 2009, also logged their sixth straight session loss, which was the longest streak of daily declines since March. January Brent crude on London’s ICE Futures exchange dropped $1.80, or 4.5%, to $37.93 a barrel, ahead of the January futures contract expiration on Wednesday. The settlement was the lowest since December 2008, with the contract losing 11.8% on the week. “The near term support is near $33.19 and given where the fundamentals are, there is nothing stopping the [WTI] price to visit this level. However, if we break this level, then we could easily be moving towards the support area of $30,” said Naeem Aslam, chief market analyst at AvaTrade, in emailed comments.
On Friday, a report from the IEA showed “greater ‘pessimism’” about supply, and the organization doesn’t see oversupply eliminated before the end of 2016, noted Commerzbank analysts. “In other words, there is unlikely to be any kind of ‘happy ending’ for oil prices this year,” the analysts said. The IEA said in its report that it sees only limited upside for oil prices until Iran starts ramping up output if sanctions ease up next year. Then it took a swipe at OPEC. “The freewheeling OPEC policy does not—for now-alter the status quo on its supply,” said the IEA, which advises the world’s biggest economies on energy policies. According to OPEC’s monthly report issued Thursday, November’s OPEC total output is almost 900,000 barrels a day more than the estimated demand for OPEC crude next year. The group last pumped more crude in April 2012, when its production was 31.7 million barrels a day, an OPEC official said.