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Market Close: Nov 10 Down

Fueling Strategy: Please keep tanks topped today, tonight before 23:00 CST please have tanks full of fuel, Thursday prices will jump UP 4 to 4.5 cents, Be Safe
NYMEX Crude    $ 81.34 DN $2.8100
NYMEX ULSD     $2.4521 DN $0.0560
NYMEX Gas       $2.2972 DN $0.0780
NEWS

Oil declined amid a stronger dollar and after a U.S. government report showed a surprise increase in domestic crude stockpiles. Futures in New York fell 3.3% on Wednesday, the biggest drop in a week, as a rising dollar weighed on commodities like oil priced in the currency. In the U.S., domestic crude inventories increased for a third straight week to the highest since August, according to an Energy Information Administration report. The industry-funded American Petroleum Institute had reported a supply decline on Tuesday.

Traders are also continuing to assess the Biden administration’s plans to quell rising energy prices. The White House didn’t announce a strategic petroleum reserve release on Tuesday and said it continues to look at all the tools it has available to limit the impact of high prices on consumers. “The market is feeling around in the dark for clue as to how the U.S. administration responds to higher energy prices,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management. The combination of a stronger dollar and less bullish inventory data is also contributing the price, she said.

Oil surged to a seven-year high last month as economies recovered from the coronavirus pandemic and a global energy crisis aided demand, boosting U.S. gasoline prices and fanning inflation. The head of Mercuria Energy Group Ltd. said oil demand has returned to pre-pandemic levels, joining Vitol Group in calling the global crude market recovery. Rising prices prompted President Joe Biden to weigh the merits of an emergency crude release with the Organization of Petroleum Exporting Countries and its allies refusing to hike output faster.

Eleven Democratic senators, including several known for their concerns on climate change, urged Biden in a letter this week to act quickly with the national average price for a gallon of gasoline at its highest level since 2014. The senators invoked the “undue burden” on families and small businesses and pressed for the release of oil from the nation’s strategic reserve or even the more drastic step of banning export of U.S. crude.

There was also speculation the U.S. might coordinate reserve releases with other nations including Japan, which has also been pressing OPEC+.  Hikariko Ono, director general of the Economic Affairs Bureau, held a video conference with the head of the International Energy Agency to register concern over prices. On the call, the IEA’s Fatih Birol expressed a willingness to work with members and producers to stabilize the market.

The EIA report also showed inventories at the nation’s biggest storage hub at Cushing, Oklahoma, fell 34,000 barrels last week.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
www.owneroperatoradvisoryservice.com
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”
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.