Fueling Strategy: Please fill as needed tonight, Be Safe

NYMEX Crude $ 45.93 UP $1.4500
NY Harbor ULSD $1.4490 UP $0.0417
NYMEX Gasoline $1.4024 UP $0.0255

NEWS
Crude-oil futures rebounded Monday, tacking on more than 3%, as traders placed their latest wagers on the possibility that major producers will make progress this week on a pact to limit production.

November West Texas Intermediate crude climbed $1.45, or 3.3%, to settle at $45.93 a barrel on the New York Mercantile Exchange, after losing about 4% in Friday’s session. November Brent crude the global oil benchmark, rose $1.46, or 3.2%, to $47.35 a barrel on London’s ICE Futures exchange. “It will be very hard to see through the market noise in the front half of this week, but some key levels to watch are $43 and $48/barrel in WTI futures as those areas have been the ‘bookends’ on the market for all of September,” Tyler Richey, co-editor of The 7:00’s Report, told MarketWatch.

Algeria’s Energy Minister Noureddine Boutarfa said in an interview with Bloomberg Sunday that the most important thing is to stabilize the oil market. He also said that several scenarios will be studied, including scenarios for an output cut and a freeze. Oil prices sank Friday after Saudi Arabia said it didn’t expect the Organization of the Petroleum Exporting Countries and other prominent non-cartel producers, such as Russia, to clinch a deal on Wednesday when they meet on the sidelines of an energy conference in Algeria. “The market will remain sensitive to any comments from major players like Saudi Arabia, Iran, and Russia while ‘smaller fish’ such as Venezuela and Libya can largely be ignored because they are prone to making fairly ‘desperate’ claims to try to rally the market, said Richey. “If the meeting turns out to be a disappointment, focus will return to U.S. data as the long-term and near-term outlooks based on recent data are conflicting,” he said. “Near term, the largest three week draw since summer of 2013 has been bullish while longer term, stabilizing oil production in the U.S. has put a damper on estimates as to when the production surplus will come into balance.” Analysts, meanwhile, believe that OPEC is increasing pressure to take action to support prices. “Whichever way you slice it, OPEC has to cut production or else the market will not draw down the overhang accumulated over 2014 and 2015 even next year,” said consultancy Energy Aspects. OPEC’s monthly report in August noted non-OPEC supply will likely rise by 350,000 barrels a day in 2017, an upward revision from the previous estimate due to the stronger-than-expected resilience from the U.S. shale producers. According to industry group Baker Hughes the number of rigs drilling for oil in the U.S. rose by 2 to 418 in the week ended Sept. 16.