Fueling Strategy: Please wait to fuel until after midnight, Wednesday AM wholes price will drop almost 1.5 cents – Be Safe Tonight!

NYMEX Crude $ 44.21 UP $.3400
NY Harbor ULSD $1.4865 UP $.0091
NYMEX Gasoline $1.3573 DN $.0087

NEWS
Oil futures finished higher on Tuesday as expectations that U.S. production will continue to decline helped prices stage a partial rebound from a four-session decline. But a top energy watchdog warned that the Organization of the Petroleum Exporting Countries’ decision to keep pumping crude could depress prices until the end of the decade, putting a limit oil’s gains for the session.

On the New York Mercantile Exchange, December West Texas Intermediate crude tacked on 34 cents, or 0.8%, to settle at $44.21 a barrel. December Brent LCOZ5, -0.23% ended at $47.44 a barrel on Tuesday, up 25 cents, or 0.5%, on London’s ICE Futures exchange. Prices for both WTI and Brent had posted declines in each of the last four trading sessions. Following the recent losses, Fawad Razaqzada, technical analyst at Forex.com, said he “wouldn’t be surprised if oil finds a base at these levels.” “At this stage, however, it is too early to say whether the bounce will materialize into a rally,” he said.

In its World Energy Outlook, the International Energy Agency said “a lasting switch in OPEC production strategy in favor of securing a higher share of the oil market mix” could keep the price of Brent crude at around $50 a barrel through to the end of the decade. The EIA also said, however, that oil could rebound to $80 a barrel by 2020 as the oversupplied market begins to balance. Some “OPEC talk that they are going to put in a production cap as well as comments by the OPEC secretary-general that they see a balanced market next year,” offered support for oil prices Tuesday, said Phil Flynn, senior market analyst at Price Futures Group. “This is the first inkling by OPEC in some time that there may be at least some restraint on production.” For now, the oil market is keeping its bets that OPEC will leave its output ceiling unchanged at the next meeting Dec. 4 in Vienna. Some U.S. oil companies, however, have announced cutbacks in exploration and production spending with WTI and Brent prices trading roughly 17% lower year to date. That could help alleviate the glut of crude supplies.

Data from the Energy Information Administration on Monday showed that total oil production from seven major shale plays is expected to decline in December from a month earlier. Output from the Bakken and Eagle Ford regions has been falling each month since March. Meanwhile, in monthly report released Tuesday, the EIA lowered its 2016 U.S. crude output forecast to 8.77 million barrels a day from a previous view of 8.86 million. It also raised its WTI price outlook to $49.88 for this year, but lowered its 2016 forecast to $51.31. The American Petroleum Institute will release its weekly update on U.S. petroleum supplies late Tuesday. The EIA will release its weekly report on Thursday morning, a day late because of Wednesday’s Veterans Day holiday. Analysts polled by Platts expect the data to show a fall of 500,000 barrels in crude inventories.