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Market Close: Oct 05 UP

Fueling Strategy: Please have your tanks full of fuel tonight before 23:00 CST,  Wednesday prices will jump UP 5.5 cents THEN Thursday look for a 6 cent jump up! Be Safe
NYMEX Crude    $ 78.93 UP $1.3100
NYMEX ULSD     $2.4936 UP $0.0570
NYMEX Gas       $2.3579 UP $0.0494
NEWS

Oil extended its rally from a seven-year high a day after OPEC+’s decision to keep its supply agreement in place as energy prices spike stoking concerns that more petroleum products will be used in power generation. U.S. crude futures advanced 1.7% Tuesday, heading closer to the key, psychological $80-a-barrel level. At an OPEC+ meeting on Monday, Saudi Arabia and its partners opted for only a modest output increase of 400,000 barrels a day for November. U.S natural gas futures jumped to a 12-year high as global as global shortages of that fuel fanned fears of a shortage in the U.S ahead of winter in the northern hemisphere. “There is no room for error in the system,” said Phil Flynn, senior market analyst at Price Futures Group Inc. “If we get a cold winter these prices could go up dramatically.”

Meanwhile, the industry-funded American Petroleum Institute reported U.S. crude stockpiles rose 951,000 barrels last week, according to people familiar with the data. Both the U.S. and global crude benchmarks have surged this month with rising energy prices stoking fear of inflation forcing consumers to pay more for everything from gasoline to heating, food and plastics. Goldman Sachs Group Inc. forecast that power generation could add an extra 650,000 barrels a day to oil demand this winter due to high gas prices.

Underlying oil market gauges are also showing signs of strength. West Texas Intermediate crude’s so-called Dec.-Red-Dec. spread, a favored trade of the world’s hedge funds, topped $7.50 a barrel this week, the strongest on a rolling basis since 2019.

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.