Fueling Strategy: Please “PARTIAL FILL ONLY TODAY/TONIGHT OR BETTER YET WAIT TO FUEL UNTIL THURSDAY AM” Prices will go DOWN 3.5 Cents Thursday Be Safe Today!  

NYEX Crude      $  70.08 DN $.6300

NYMEX ULSD     $2.2279 DN $.0361

NYMEX Gas       $1.9439 DN $.0318

NEWS

The February WTI trading session settled at 70.08 (-.63), a high of 70.54, a low of 68.81. Cash price is at 70.58 (-0.51), while open interest for CLG25 is at 321,009. CLG25 settled below its 5 day (70.08), below its 20 day (68.92), above its 50 day (69.37), below its 100 day (69.87), below its 200 day (72.84) and below its year-to-date (72.59) moving averages. The COT report (Futures and Options Summary) as of 12/10 showed commercials with a net short position of -227,239 (a decrease in short positions by +10,313 from the previous week) and non-commercials who are net long +214,911 (a decrease in long positions by -12,938 from the previous week).

Fresh data from the Federal Reserve’s Board of Governors showed November U.S. industrial production decreased by 0.1% in November compared to October, and is lower 0.9% than November of 2023.  Manufacturing output increased by 0.2% in November compared to October, but was lower by 1% than November of 2023. Utilities were down 1.3% compared to October. According to Census Bureau data, U.S. retail sales beat their forecast, rising by 0.7% in November. October retail sales were revised upward to a 0.5% increase, previously it was 0.4% for October. The Fed met today and will meet again tomorrow where they are expected to cut rates again by 25 basis points. As of this morning the CME’s Fedwatch tool pegs it at a 95.4% chance, all but certain. All three major American stock indexes closed lower, with the Dow having its 9th consecutive negative day, something which hasn’t happened since 1978. The Dollar Index (DYX) closed higher by 0.08%.

Bloomberg reported that tanker-tracking data showed Russia’s seaborne crude exports fell by 11% over the last four weeks. Last month both the UK and EU put sanctions on Russia’s so-called “shadow fleet” of crude oil tankers. Last Friday U.S. Treasury Secretary Janet Yellen mentioned the Biden Administration is also considering putting on similar sanctions on the said shadow fleet of Russian oil tankers. 

China’s National Bureau of Statistics released data showing China’s retail sales growth in November dipping deeper than expected at 3% year-over-year against a forecast of 5% and below October’s 4.8%. However, China’s November industrial production came in higher than its forecast, hitting 5.4% year-over-year against a forecast of 5.3%. Reuters reported that China’s November crude oil imports hit a fourteen-month high, showing a surplus of roughly 1.77 million barrels per day, with an average import of 11.81 million barrels per day. The National Bureau of Statistics said China’s oil refineries processed about 14.24 million barrels per day, up 0.2% year-over-year. China’s crude oil imports grew in November for the first time in seven months, registering a  +14% year-over-year increase Reuters reported, citing customs data. In November China was shown to have imported and produced roughly 1.77 million barrels per day more than it consumed. Last week China’s Politburo signaled it is planning to expand fiscal spending and have its first monetary easing since 2010, according to the official state Xinhua News Agency.  The group said China will hit their target growth for 2024 of “around 5%”, with 2025 expected to be slightly higher than this year. China signaled they were considering allowing the yuan to weaken next year to offset the impact of the potential trade war with the Trump Administration. Leaders at China’s Central Economic Work Conference also mentioned they could increase their budget deficit to 4% of their GDP and increase debt issuance at the local and central government levels, while also hinting at cutting interest rates. The National People’s Congress standing committee meeting is set to be held in late December. The Shanghai based CSI 300 Index closed higher by 0.26%.

Have a Great Day!

Loren R Bailey, President

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Cell: 479-790-5581

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