Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Saturday look for a 6.5 cent jump in prices BUT Sunday we’ll see a $.1017 drop in prices, Be Safe

NMEX Crude      $ 80.51 DN $1.9500

NYMEX ULSD     $2.9238 DN $0.1017

NYMEX Gas       $2.2010 DN $0.0450

NEWS

December WTI crude oil Friday closed down -1.95 (-2.36%), and Dec RBOB gasoline closed down -0.0450 (-2.00%). Crude oil and gasoline prices fell sharply after Friday’s weak U.S. unemployment report reinforced expectations that the U.S. economy is headed for a significant slowdown.  Crude prices have underlying support from concern that the Israel-Hamas conflict could escalate and disrupt crude oil supplies from the Middle East.  Hezbollah’s leader said Friday that Hezbollah had no prior knowledge of the Hamas attack, but that “all possibilities are open on our Lebanese front.”  Hezbollah-supported militants in Lebanon and the Israeli military have been trading sporadic fire in the past several weeks since the Hamas attack. An increase in Russian crude exports is bearish for oil prices.  Tanker-tracking data monitored by Bloomberg shows 3.53 million bpd of crude was shipped from Russian ports in the week ended Oct 22, an increase of 20,000 bpd from the previous week.

In a bearish factor for crude oil, the U.S. on Oct 18 said it would ease sanctions for six months on Venezuela’s oil exports in exchange for steps to ensure the country holds fair presidential elections next year.  An easing of sanctions would put additional crude supplies on the global market, with some analysts estimating about 200,000 bpd of additional supplies. The tightness in the oil market is expected to continue due to the extension of OPEC+ production cuts.  Saudi Arabia recently said it would maintain its unilateral crude production cut of 1.0 million bpd through December.  The move will hold Saudi Arabia’s crude output at about 9 million bpd, the lowest level in three years.  Russia also recently announced that it would maintain its 300,000 bpd cut in crude production through December.  OPEC Oct crude production was little changed, rising +50,000 bpd to 28.08 million bpd.

An increase in crude in floating storage is bearish for prices.  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 rose +5.8% w/w to 74.69 million bbl as of Oct 27.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Oct 27 were -5.2% below the seasonal 5-year average, (2) gasoline inventories were +2.1% above the seasonal 5-year average, and (3) distillate inventories were -12.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Oct 27 was unchanged w/w at a record high of 13.2 million bpd.

Baker Hughes reported Friday that active U.S. oil rigs in the week ended Nov 3 fell by -8 rigs to 496 rigs, posting a new 1-3/4 year low.  The number of U.S. oil rigs has fallen this year after moving sharply higher during 2021-22 from the 18-year pandemic low of 172 rigs posted in Aug 2020 to a 3-1/2 year high of 627 rigs in December 2022.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

SCHEDULED OUT OF OFFICE  

NOV 18 Out Afternoon

NOV 19 Out Until Noon

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

 

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams 

Market Close: Nov 02 UP Diesel UP $.0640, Gas UP $.0605

NMEX Crude      $ 82.46 UP $2.0200