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Market Close: Oct 17 Mixed

Fueling Strategy: Please keep tanks topped tonight, Friday prices will go UP 3.5 cents- Be Safe
NYMEX Crude    $  53.93 UP $.5700
NYMEX ULSD     $1.9508 UP $.0055
NYMEX Gas       $1.6225 DN $.0023
NEWS
Oil rose 1% on Thursday, boosted by a weaker dollar and the announcement that the United Kingdom and the European Union had reached a deal on Brexit. Industry data did show a larger-than-expected build-up in U.S. inventories.Global benchmark Brent Crude settled  52 cents higher at $59.94. U.S. WTI Crude closed up 57 cents, or 1.2%, to settle at $53.93.U.S. crude inventories soared by 9.3 million barrels to 434.9 million barrels in the week to Oct. 11, the U.E. Energy Information Administration said. Analysts had estimated U.S. crude inventories rose by around 2.8 million barrels last week.

“The U.S. sanctions imposed on the Chinese shipping company COSCO are seriously denting demand for imported crude oil… This has a profound impact on U.S. crude oil inventories as reflected in last nights API report,” said Tamas Varga, an analyst at PVM Oil Associates. “U.S. refinery maintenance is not helping to reverse the current trend and further builds in U.S. crude oil inventories can be expected in the next few weeks.” The United States imposed sanctions on COSCO Shipping Tanker (Dalian) Co and subsidiary COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co for allegedly carrying Iranian crude oil.

Adding to concerns about the global economy – and therefore oil demand – data from the United States showed retail sales in September fell for the first time in seven months. Earlier data showed a moderation in job growth and services sector activity. Still, the new Brexit deal helped limit the fall in oil prices. Prime Minister Boris Johnson said that Britain and the EU had agreed a “great” new Brexit deal and urged lawmakers to approve it at the weekend. European Commission President Jean-Claude Juncker also said Britain and the EU had agreed a deal. However, the Northern Irish party Johnson needs to help ratify any agreement has refused to support the deal.

Hopes of a potential U.S.-China trade deal also supported crude prices. China’s commerce ministry said on Thursday that China hoped to reach a phased agreement with Washington as early as possible, and make progress on canceling tariffs on each others’ goods.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
Office: 479-846-2761
Cell: 479-790-5581
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.