Fueling Strategy: Please “PARTIAL FILL ONLY OR BETTER YET WAIT TO FUEL UNTIL SUNDAY AM”, Sunday prices will DROP5 Cents ~ Be Safe Today!

NYEX Crude      $  70.38 DN $1.9800

NYMEX ULSD     $2.2389 DN $0.0475

NYMEX Gas       $2.0125 DN $0.0411

NEWS

December WTI crude oil Friday closed down -1.98, and December RBOB gasoline closed down -0.0411. Crude oil and gasoline prices Friday were under pressure after Chinese stimulus measures were seen as underwhelming, which may keep Chinese economic growth and energy demand subdued.  Also, Friday’s dollar strength weighed on energy prices.  In addition, crude oil prices are being undercut by speculation that President-elect Trump’s policies will increase US crude production and that new tariffs may slow China’s economy.

Friday’s Chinese stimulus announcement fell short of hopes for more measures to stimulate consumer demand in China and revive its slumping housing market.  The Chinese government announced a 10-trillion yuan ($1.4 trillion) multi-year program to refinance local debt, disappointing analysts looking for more steps to contend with China’s slowing economy. Friday’s stronger-than-expected global economic news supported energy demand and crude prices.   The University of Michigan US Nov consumer sentiment index rose +2.5 to a 7-month high of 73.0, stronger than expectations of 71.0.  Also, the  Japan Sep leading index CI rose +2.5 to a 4-month high of 109.4, stronger than expectations of 109.0. Crude demand in China has weakened and is a bearish factor for oil prices.  According to Chinese customs data, China Oct crude imports fell -2% m/m and -9% y/y to 44.7 MMT, and crude imports year-to-date are down -3.4% y/y at 457.074 MMT.  China is the world’s second-largest crude consumer.

Crude has support from Sunday’s news that OPEC+ will delay its 180,000 bpd crude production increase by a month, the second straight month that the supply increase has been postponed.  OPEC’s Oct crude production rose +370,000 bpd to 26.9 million bpd.Bellicose comments from Iran on Monday were bullish for crude when Iranian supreme leader Ayatollah Ali Khamenei warned of a “crushing response” to Israel’s recent air strikes on Iran.  Also, a report by the Wall Street Journal Sunday said that Iran is planning a counterattack on Israel involving more powerful warheads and other weapons.  An escalation of hostilities between Iran and Israel could widen the conflict in the Middle East and disrupt the region’s crude supplies. A decline in crude oil held worldwide on tankers is bullish for oil prices.  Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -8.2% w/w to 51.44 million bbl in the week ended November 1.

A decline in Russian crude exports is bullish for crude.  Weekly vessel-tracking data from Bloomberg showed Russian crude exports fell by -530,000 bpd to 3.02 million bpd in the week to November 3, a 6-week low.  Separately, Russia’s Energy Ministry reported on October 23 that Russia’s Sep crude production was 8.97 million bpd, down -13,000 bpd from Aug and just below the 8.98 million bpd output target it agreed to with OPEC+.

Wednesday’s EIA report showed that (1) US crude oil inventories as of November 1 were -4.6% below the seasonal 5-year average, (2) gasoline inventories were -2.4% below the seasonal 5-year average, and (3) distillate inventories were -5.9% below the 5-year seasonal average.  US crude oil production in the week ending November 1 was unchanged w/w at a record 13.5 million bpd.

Baker Hughes reported Friday that active US oil rigs in the week ending November 8 were unchanged at 479 rigs, just above the 2-1/2 year low of 477 rigs posted in the week ending July 19.  The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

Nov 08th Out of Office at 13:00

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 32-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford