Fueling Strategy: Please partial fill tonight, Wednesday AM wholesale prices will drop 3.5 Cents – Be Safe Tonight!

NYMEX Crude $ 42.92 DN $.2100
NY Harbor ULSD $1.3260 UP $.0032
NYMEX Gasoline $1.3452 UP $.0116

NEWS
Futures stuck close to three-month lows on Tuesday, with West Texas Intermediate crude settling under $43 a barrel as traders continued to fret over the prospect of more U.S. oil-drilling activities and an expected slowdown in domestic refining activities.

September West Texas Intermediate crude fell by 21 cents, or 0.5%, to settle at $42.92 a barrel on the New York Mercantile Exchange. That was the lowest settlement for a most-active contract since April 25, according to FactSet data. September Brent crude however, tacked on 15 cents, or 0.3%, to settle at $44.87 a barrel on the ICE Futures exchange in London, rebounding from an intraday low of $44.14.

“The pull back which we are experiencing for [WTI] oil was very much expected and it is likely that we may fall under $40, and that could be a good opportunity to build your position back up,” said Naeem Aslam, chief market analyst at ThinkMarkets. He pointed out that on the weekly chart, there’s a “bullish pattern forming: the reverse head-and-shoulder pattern.” That can be used to predict the reversal of a current downtrend. “The projection of this pattern could push the price to $70,” possibly in mid-2017, said Aslam.

The market awaits the latest data on U.S. petroleum supplies due out Wednesday from the Energy Information Administration. Trade group American Petroleum Institute will issue its own data later Tuesday. Analysts surveyed by S&P Global Platts expect to see a decline of 2.6 million barrels, on average, for crude-oil stockpiles. They are also looking for a draw down of 700,000 barrels for gasoline supplies and an increase of 400,000 barrels for distillates, which include heating oil.

“For an extended period, oil has remained fundamentally bearish with the recurrent oversupply woes sabotaging any real recovery in value,” said Lukman Otunuga, research analyst at FXTM. “The growing threat of a renewal in U.S. oil production continues to haunt investor attraction further while fears of a decline in demand amid slowing global growth have capped most upside gains.” Data released Friday showed a rise in the U.S. oil-rig count for the seventh week in eight. Oil “could be poised for steeper losses as the toxic combination of excessive oversupply and fading demand provide a foundation for sellers to attack,” said Otunuga, in a note.