X

Market Close: Oct 09 UP, Diesel UP $.0658, Gas UP $.0459

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Be Safe

 

NMEX Crude      $ 86.38 UP $3.5900

NYMEX ULSD     $2.9966 UP $0.0658

NYMEX Gas       $2.2381 UP $0.0459

NEWS

November WTI crude oil on Monday closed up +3.59 (+4.34%), and Nov RBOB gasoline closed up +4.59 (+2.09%). Nov WTI crude oil and gasoline prices on Monday closed sharply higher.  Renewed instability in the Middle East pushed crude prices sharply higher after Hamas militants attacked Israel over the weekend.   There are heightened concerns that the conflict may widen and disrupt crude oil supplies from the Middle East.  The U.S. sent a group of warships to the eastern Mediterranean.  The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risk there may be retaliation measures against Iran.

Negative factors for crude prices Monday included a stronger dollar and weakness in the crude crack spread.  Monday’s crack spread dropped to a 1-3/4 year low, discouraging refiners from purchasing crude and refining it into gasoline and distillates.

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.   Saudi Arabia and Russia on Wednesday announced that they will retain their crude production cuts until the end of the year.   OPEC Sep crude production was little changed, rising +50,000 bpd to 27.97 million bpd. A decline in crude in floating storage is bullish 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 fell -15% w/w to 70.04 million bbl as of Oct 6, the lowest in 10 months.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 29 were -4.5% below the seasonal 5-year average, (2) gasoline inventories were +1.1% above the seasonal 5-year average, and (3) distillate inventories were -12.8% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 29 was unchanged w/w at 12.9 million bpd, the most in 3-1/2 years.  U.S. crude oil production is modestly below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Oct 6 fell by -5 to a 20-month low of 497 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs have roughly tripled from the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

Have a Great Day,

 Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

 

SCHEDULED OUT OF OFFICE 

OCT 13 Out After 14:00

OCT 18 Out After 11:00 

NOV 02 Out of Office All Day 

NOV 03 Back Late Afternoon 

 

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 30-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

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.