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Market Close: July 22 MIXED, Diesel UP $.0157, Gas UP $.0202

July 23rd Fueling Strategy: Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT, Wednesday prices will go UP 1.5 Cents ~ Be Safe Today

NMEX Crude      $ 79.78 DN $.3500

NYMEX ULSD     $2.4348 UP $.0157

NYMEX Gas       $2.4706 UP $.0202

NEWS

Sep WTI crude oil on Monday closed down -0.35 (-0.31%), and Sep RBOB gasoline closed up +1.46 (+0.60%).

Crude oil prices on Monday extended last Friday’s sharp losses on concern about the global economy and US political uncertainty.  China’s -10 bp rate cut on Monday reinforced worries about China’s weak economy.  The markets were already worried about Asian economic growth after Japan’s Cabinet Office last Friday cut its Japan 2024 GDP projection to +0.9% from a previous estimate of +1.3%.   Meanwhile, US political uncertainty increased after President Biden on Sunday dropped out of the presidential race and endorsed Vice President Harris. 

Crude has support from wildfires in Canada that threaten to curb Canadian crude production.  Rystad Energy said last Friday that 52 out-of-control wildfires in Alberta, Canada, threaten nearly 500,000 bpd of crude oil sands output and pipeline shipments to the US.

A decline in crude oil in floating storage is bullish for prices.  Last Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -20% w/w to 74.53 million bbl as of July 12.

In a bearish factor, Russia’s crude exports in the week to July 14 rose by +200,000 bpd to 2.97 million bpd, according to vessel-tracking data compiled by Bloomberg.  Also, higher-than-expected Russian crude output is bearish for oil prices.  Russian crude production averaged 9.078 million bpd in June, above its agreed target of 9.049 million bpd.  

OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies.  On June 2, OPEC+ extended the 2 million bpd of voluntary crude production cuts into Q3 but said they would gradually phase out the cuts over the following 12 months, beginning in October.  OPEC pledged to extend its crude production cap at about 39 million bpd to the end of 2025.  Also, the UAE was given a 300,000 bpd boost to its production target for 2025.  In June, OPEC crude production fell -80,000 bpd to 26.98 million bpd.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

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July 19 After Lunch

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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!

“Celebrating 31-years of Service Excellence”

www.FuelManagerServices.com

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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.