Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Friday prices will DROP 18 CENTS!!! then Saturday diesel will drop another 15 Cents  ~ Be Safe

NMEX Crude      $ 82.31 DN $1.9100

NYMEX ULSD     $2.8687 DN $0.1491

NYMEX Gas       $2.1890 DN $0.0090

NEWS

November WTI crude oil on Thursday closed down -1.91 (-2.27%), and Nov RBOB gasoline closed down -0.90 (-0.41%). Nov WTI crude oil and gasoline prices on Thursday extended Wednesday’s sharp losses, with crude falling to a 5-week low and gasoline dropping to a 9-1/2 month low.   Crude prices are sliding on concern that slowing global growth will erode energy demand and consumption.  A weaker dollar Thursday limited the downside in energy prices.

Global economic news Thursday was mixed for energy demand and crude prices.  On the bearish side,  German Aug exports fell -1.2% m/m, weaker than expectations of -0.6% m/m.  Also, the German Sep S&P construction PMI fell -2.2 to 39.3, the weakest level since the data series began in 2020.  Conversely, U.S. weekly initial unemployment claims rose +2,000 to 207,000, showing a stronger labor market than expectations of 210,000. Weakness in the crude crack spread is bearish for crude prices.  Thursday’s crack spread fell to a 20-month low, discouraging refiners from purchasing crude oil and refining it into gasoline and distillates.

A supportive factor for crude was Thursday’s action by Saudi Arabia’s state-owned Saudi Aramco to raise the price of its Arab light crude to Asian customers for November delivery by 40 cents per bbl, above expectations of 20 cents. The outlook for tighter global fuel supplies is supportive for crude.  Late last month, Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market. 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 maintain 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 -11% w/w to 82.52 million bbl as of Sep 29.

The U.S. and Iran announced late last month a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

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 Sep 29 fell -5 to a 19-3/4 month low of 502 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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Thursday prices will fall almost 3 Cents BUT Friday LOOK for prices to DROP 18 CENTS!!!  ~ Be Safe

NMEX Crude      $ 84.22 DN $5.0100

NYMEX ULSD     $3.0178 DN $0.1776

NYMEX Gas       $2.1980 DN $0.1621

NEWS

November WTI crude oil on Wednesday closed down -5.01 (-5.61%), and Nov RBOB gasoline closed down -16.21 (-6.87%). Nov WTI crude oil and gasoline prices on Wednesday sold off sharply, with crude falling to a 5-week low and gasoline tumbling to a 9-1/2 month low.   Wednesday’s weaker-than-expected U.S. Sep ADP employment report signals a slowdown in the labor market that is bearish for energy demand and oil prices.  Crude prices extended their losses despite an unexpected decline in EIA crude inventories after weakness in U.S. gasoline demand led to an unexpected surge in EIA gasoline supplies.

Global economic news Wednesday was mixed for energy demand and crude prices.  On the bearish side,  the U.S. Sep ADP employment change rose +89,000, weaker than expectations of +150,000 and the smallest increase in over 2-1/2 years.  Also, Eurozone Aug retail sales fell -1.2% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 8 months.

On the bullish side, the U.S. Sep ISM services index fell -0.9 to 53.6, stronger than expectations of 53.5.  Also, U.S. Aug factory orders rose +1.2% m/m, stronger than expectations of +0.3% m/m.  In addition, Japan Sep Jibun Bank services PMI was revised upward by +0.5 to 53.8 from the initially reported 53.3. Weakness in the crude crack spread is bearish for crude prices.  Wednesday’s crack spread dropped to a 20-month low, discouraging refiners from purchasing crude oil and refining it into gasoline and distillates.

The outlook for tighter global fuel supplies is supportive for crude.  Late last month, Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market.

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 maintain 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 -11% w/w to 82.52 million bbl as of Sep 29.

The U.S. and Iran announced late last month a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

Wednesday’s weekly EIA report is mixed for crude.  On the bearish side, EIA gasoline inventories unexpectedly surged +6.48 million bbl versus expectations of a -300,000 bbl draw as U.S gasoline demand in the week ended Sep 29 fell -7.0% w/w to 8.01 million bpd, the lowest in almost nine months.  Also, crude supplies at Cushing, the delivery point of WTI futures, rose +132,000 bbl.  On the bullish side, EIA crude inventories unexpectedly fell -2.22 million bbl to a 10-month low versus expectations of a +50,000 bbl build.  Also, EIA distillate stockpiles fell -1.27 million bbl, a larger draw than expectations of -68,000 bbl.

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 Sep 29 fell -5 to a 19-3/4 month low of 502 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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight due to Wednesday prices will fall almost 8 Cents and Thursday look for another 3 ~ Be Safe

NMEX Crude      $ 89.23 UP $.4100

NYMEX ULSD     $3.1954 DN $.0271

NYMEX Gas       $2.3601 DN $.0521

NEWS

November WTI crude oil on Tuesday closed up +0.41 (+0.46%), and Nov RBOB gasoline closed down -5.21 (-2.16%). Nov WTI crude oil and gasoline prices on Tuesday settled mixed, with gasoline falling to a 5-month low.  Tuesday’s rally in the dollar index to a 10-1/4 month high is negative for energy prices.  Crude prices have support on tightness in global crude supplies.  Gains in crude were limited, and gasoline fell, as Tuesday’s jump in T-note yields to a 16-year high may curb economic growth and energy demand. Weakness in the crude crack spread is bearish for crude prices.  Tuesday’s crack spread dropped to a 19-month low, discouraging refiners from purchasing crude oil and refining it into gasoline and distillates.

The outlook for tighter global fuel supplies is supportive for crude.  Late last month, Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market. 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.  OPEC+ is scheduled to meet on Wednesday and is expected to maintain its production cuts.  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 -11% w/w to 82.52 million bbl as of Sep 29. The U.S. and Iran announced late last month a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

The consensus is for Wednesday’s weekly EIA crude inventories to climb by +50,000 bbl. Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 22 were -3.4% below the seasonal 5-year average, (2) gasoline inventories were -2.2% below the seasonal 5-year average, and (3) distillate inventories were -13.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 22 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 Sep 29 fell -5 to a 19-3/4 month low of 502 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.

Tuesday’s U.S. economic news was better than expected and was bullish for energy demand and crude prices after the Aug JOLTS job openings unexpectedly rose +690,000 to 9.610 million, showing a stronger labor market than expectations for a decline to 8.815 million.

Hawkish Fed comments on Tuesday pushed the 10-year T-note yield to a 16-year high, which may weigh on economic growth and energy demand.  Cleveland Fed President Mester said, “I suspect we may well need to raise the fed funds rate once more this year and then hold it there for some time.”  Also, Atlanta Fed President Bostic said the Fed still “has a ways to go” on inflation, and he wants to hold interest rates at elevated levels “for a long time.”

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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Tuesday Please “Partial Fill Only” due to Wednesday prices will drop 8 cents ~ Be Safe

NMEX Crude      $ 88.82 DN $1.9700

NYMEX ULSD     $3.2225 DN $0.0781

NYMEX Gas       $2.4122 UP $0.0127

NEWS

November WTI crude oil on Monday closed down -1.97 (-2.17%), and Nov RBOB gasoline closed up +1.27 (+0.53%). Nov WTI crude oil and gasoline prices on Monday settled mixed.  Monday’s rally in the dollar index to a 10-month high was bearish for energy prices.  Crude prices also fell on the threat of higher interest rates that could slow economic growth and energy demand after Fed Governor Bowman said, “I continue to expect that further interest rate increases will likely be needed to return inflation to 2% in a timely way as high energy prices could reverse some of the progress we have seen on inflation in recent months.” However, Monday’s global manufacturing news was better than expected and was bullish for energy demand and crude prices.  The U.S. Sep ISM manufacturing index rose +1.4 to 49.0, stronger than expectations of 47.9.  Also, the China Sep manufacturing PMI rose +0.5 to a 6-month high of 50.2, stronger than expectations of 50.1.

Comments on Monday from United Arab Emirates Energy Minister Suhail Al Mazrouei supported crude prices since he signaled he favors maintaining OPEC+ crude production cuts by saying the alliance has “the right policy.” The outlook for tighter global fuel supplies is supportive for crude.  Late last month, Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market. 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.  OPEC+ is scheduled to meet on Wednesday and is expected to maintain its production cuts.  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 -11% w/w to 82.52 million bbl as of Sep 29.

The U.S. and Iran announced late last month a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 22 were -3.4% below the seasonal 5-year average, (2) gasoline inventories were -2.2% below the seasonal 5-year average, and (3) distillate inventories were -13.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 22 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 Sep 29 fell -5 to a 19-3/4 month low of 502 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

NOV 02 All Day

NOV 03 In Office @ 14:00

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 31-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

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Saturday prices will remain flat then Sunday look for a 4 to 4.5 cent jump in prices, Be Safe

NMEX Crude      $ 90.79 DN $.9200

NYMEX ULSD     $3.3622 UP $.0442

NYMEX Gas       $2.4399 DN $.0654

NEWS

November WTI crude oil on Friday closed down -0.92 (-1.00%), and Nov RBOB gasoline closed down -6.67 (-2.70%). Nov WTI crude oil and gasoline prices Friday retreated, with gasoline tumbling to a 4-1/2 month low.  Crude prices were under pressure after Friday’s weaker-than-expected global economic news sparked concerns that a slowdown in the global economy will undercut energy demand.  A weaker dollar Friday limited losses in crude.  Also, tight global crude supplies are a bullish factor for prices.

Friday’s global economic news was mostly weaker than expected and bearish for energy demand and crude prices.  U.S. Aug personal spending rose +0.4% m/m, weaker than expectations of +0.5% m/m.  Also, the U.S. Sep MNI Chicago PMI fell -4.6 to 44.1, weaker than expectations of 47.6.  In addition, German Aug retail sales unexpectedly fell -1.2 % m/m, weaker than expectation of an increase of +0.5% m/m and the biggest decline in 8 months.  Finally, Japan Sep consumer confidence index fell -1.0 to a 6-month low of 35.2, weaker than expectations of no change at 36.2.

The outlook for tighter global fuel supplies is supportive for crude.  Last Thursday, Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market.

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.  Russian crude oil shipments in August dropped to 2.28 million bpd, down -9% m/m and the lowest daily average in eleven months.

An increase in crude in floating storage is bearish 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 rose +11% w/w to 95.93 million bbl as of Sep 22.

The U.S. and Iran last Monday announced a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 22 were -3.4% below the seasonal 5-year average, (2) gasoline inventories were -2.2% below the seasonal 5-year average, and (3) distillate inventories were -13.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 22 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 Friday that active U.S. oil rigs in the week ended Sep 29 fell -5 to a 19-3/4 month low of 502 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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Friday prices will JUMP UP 9 cents ~Be Safe

NMEX Crude      $ 91.71 DN $1.9700

NYMEX ULSD     $3.3180 UP $0.0033

NYMEX Gas       $2.5053 DN $0.0933

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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Today prices are down 4.5 Cents then Thursday prices will continue to drop another 4 Cents, Friday prices will JUMP UP 9 cents ~ Be Safe

NMEX Crude      $ 93.68 UP $3.2900

NYMEX ULSD     $3.3147 UP $0.0909

NYMEX Gas       $2.5986 UP $0.0364

NEWS

HOUSTON, Sept 27 (Reuters) – Oil prices surged 3% on Wednesday to the highest settlement in 2023, after a steep drop in U.S. crude stocks compounded worries of tight global supplies. Brent crude futures closed up $2.59, or 2.8%, at $96.55. It breached $97 a barrel during the session. U.S. West Texas Intermediate crude futures (WTI) climbed $3.29, or 3.6%, to $93.68. The session high was over $94.

U.S. crude stocks fell 2.2 million barrels last week to 416.3 million barrels, government data showed, far exceeding the 320,000-barrel drop analysts expected in a Reuters poll. Crude stocks at the Cushing, Oklahoma, storage hub, delivery point for U.S. crude futures, fell by 943,000 barrels in the week to just under 22 million barrels, the lowest since July 2022, data showed. “The market is being led up by storage numbers as we are getting to the minimum operational inventories at Cushing,” said Andrew Lipow, president of Lipow Oil Associates. Stockpiles at Cushing have been falling closer to historic low levels due to strong refining and export demand, prompting concerns about quality of the remaining oil at the hub and whether it will fall below minimum operating levels.

Prices fell last week but were rallying again as markets worried about tight supplies heading into winter, following production cuts of 1.3 million barrels a day to the end of the year by Saudi Arabia and Russia of the Organization of the Petroleum Exporting Countries and allies known as OPEC+. “Until a decision to raise production is made, the global energy market will remain tight,” Ole Hansen, Head of Commodity Strategy at Saxo Bank, said.

The tight supply was reflected in time spreads with front month Brent futures trading at a 42.28 premium over the second month, its highest since October, while on WTI futures, the front month traded at a $2.43 premium to the second month, the highest since July 2022. WTI’s discount to Brent also hit its narrowest since late April. “The market is overbought and a correction is definitely needed,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Potentially adding to supply tightness, Russian President Vladimir Putin ordered his government to ensure retail fuel prices stabilize after a jump caused by an increase in exports. In response, his deputy prime minister cited proposals to restrict exports of oil products purchased for domestic use.

The Reserve Bank of Dallas released a survey showing oil and gas activity in three key energy producing U.S. states has been rising with the latest jump in energy prices.

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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight due to Wednesday prices will fall almost 4.5 Cents ~ Be Safe

NMEX Crude      $ 90.39 UP $.7100

NYMEX ULSD     $3.2238 DN $.0384

NYMEX Gas       $2.5622 UP $.0183

NEWS

November WTI crude oil on Tuesday closed up +0.71 (+0.79%), and Nov RBOB gasoline closed up +1.32 (+0.53%). Nov WTI crude oil and gasoline prices Tuesday posted moderate gains on concern that global oil supplies will remain tight for the foreseeable future.  Crude prices also moved higher Tuesday on expectations for Wednesday’s weekly EIA crude inventory report to fall by -900,000 bbl.

Gains in crude were limited by Tuesday’s rally in the dollar index (DXY00) to a 9-3/4 month high.  Also, a slump in the S&P 500 Tuesday to a 3-1/2 month low undercut confidence in the economic outlook and was negative for energy demand and crude prices.

Tuesday’s weaker-than-expected U.S. economic reports fueled concern the U.S. economy is losing momentum, which is negative for energy demand and crude prices.  Aug new home sales fell -8.7% m/m to a 5-month low of 675,000, weaker than expectations of 698,000.  Also, the Conference Board’s Sep U.S. consumer confidence index fell -5.7 to a 4-month low of 103.0, weaker than expectations of 105.5.

Crude oil prices were also undercut by concern about China’s worsening property crisis.  China Evergrande Group said its subsidiary Hengda Real Estate Group defaulted on a 4 billion yuan ($547 million) debt payment due Monday, and Chinese authorities detained former company executives.

Weakness in the crude crack spread is bearish for oil prices.  Tuesday’s crack spread fell to a 1-1/2 year low, discouraging refiners from purchasing crude oil to refine it into gasoline and distillates.

Crude prices have carryover support from last Thursday when Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market.

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.  Russian crude oil shipments in August dropped to 2.28 million bpd, down -9% m/m and the lowest daily average in eleven months.

An increase in crude in floating storage is bearish 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 rose +11% w/w to 95.93 million bbl as of Sep 22.

The U.S. and Iran last Monday announced a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 15 were -2.9% below the seasonal 5-year average, (2) gasoline inventories were -2.7% below the seasonal 5-year average, and (3) distillate inventories were -15.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 15 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 Sep 22 fell -8 to a 19-1/2 month low of 507 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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “FUEL AS NEEDED” tonight, Tuesday please “PARTIAL FILL ONLY” due to Wednesday prices will fall almost 5 Cents ~ Be Safe

NMEX Crude      $ 89.68 DN $.3500

NYMEX ULSD     $3.2622 DN $.0440

NYMEX Gas       $2.5439 DN $.0179

NEWS

November WTI crude oil this morning is down -0.47 (-0.52%), and Nov RBOB gasoline is down -2.60 (-1.04%). Nov WTI crude oil and gasoline prices this morning are moderately lower, with gasoline falling to a 3-week low.  Today’s rally in the dollar index to a 6-1/2 month high is undercutting energy prices.  Also, there are concerns that a worsening of China’s property debt crisis will derail China’s economy and energy demand is weighing on crude prices.   However, losses in crude are limited by expectations that global oil supplies will remain tight.

Concerns that a worsening of China’s property crisis will derail its economy and demand for energy is bearish for crude prices.  China Evergrande Group on Sunday scrapped a creditor meeting and said it must revisit its restructuring plan.  Also, China Oceanwide Holdings Ltd. disclosed it is facing liquidation after a Bermuda court issued a winding-up order against the company and involved a $175 million loan principal that wasn’t paid.  In addition, concerns are growing that Chian Country Garden Holdings may suffer an imminent default after missing initial deadlines to pay dollar bond interest.

Weakness in the crude crack spread is bearish for oil prices.  Today’s crack spread fell to a 9-1/2 month low, discouraging refiners from purchasing crude oil to refine it into gasoline and distillates.

Crude prices have carryover support from last Thursday when Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market.

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.  Russian crude oil shipments in August dropped to 2.28 million bpd, down -9% m/m and the lowest daily average in eleven months.

An increase in crude in floating storage is bearish 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 rose +11% w/w to 95.93 million bbl as of Sep 22.

The U.S. and Iran last Monday announced a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 15 were -2.9% below the seasonal 5-year average, (2) gasoline inventories were -2.7% below the seasonal 5-year average, and (3) distillate inventories were -15.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 15 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 Sep 22 fell -8 to a 19-1/2 month low of 507 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

NOV 02 All Day

NOV 03 In Office @ 14:00

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

Fueling Strategy: Please “PARTIAL FILL ONLY” tonight, Friday prices will drop 5 cents then Saturday look for prices to go UP 4 cents ~Be Safe

NMEX Crude      $ 89.63 DN $.0300

NYMEX ULSD     $3.3680 UP $.0412

NYMEX Gas       $2.6199 UP $.0026

NEWS

November WTI crude oil on Thursday closed down -0.03 (-0.03%), and Nov RBOB gasoline closed down -0.26 (-0.10%).

Nov WTI crude oil and gasoline prices on Thursday whipsawed throughout the day and finally settled with modest losses.  An early rally in the dollar index Thursday to a 6-1/2 month high was bearish for energy prices.  Also, concern that the Fed will keep interest rates higher for longer undercut equities and weighs on confidence in the economic outlook, which is negative for energy demand.  Crude prices Thursday initially moved higher after Russia banned gasoline and diesel exports, further tightening global fuel supplies.

Crude prices found support Thursday after Russia said it would ban gasoline and diesel exports in an attempt to stabilize domestic fuel prices.   The ban will take out about 1 million bpd of fuel supplies, or about 3.4% of total global demand according to Vortexa data, and will squeeze supplies further in an already tight global energy market.

U.S. economic news Thursday was mixed for energy prices.  On the negative side, the  Sep Philadelphia business outlook survey fell -25.5 to -13.5, weaker than expectations of -1.0.  Also, Aug existing home sales unexpectedly fell -0.7% m/m to a 7-month low of 4.04 million, weaker than expectations of a +0.7% m/m increase to 4.10 million.  Conversely, weekly initial unemployment claims unexpectedly fell -20,000 to a 7-1/2 month low of 201,000, showing a stronger labor market than expectations of an increase to 225,000.

Oil prices have support from forecasts last week by the International Energy Agency (IEA) and OPEC that the global oil market will be in deficit through year-end.  Last Tuesday, OPEC projected that the global oil market may experience a shortfall of 3.3 million bpd in the fourth quarter, the tightest oil market in more than ten years.  Also, the International Energy Agency (IEA) last Tuesday projected the global oil market faces a deficit of about -1.2 million bpd in the second half of this year as oil supply cuts by Saudi Arabia and Russia create a “significant supply shortfall.”

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.  Russian crude oil shipments in August dropped to 2.28 million bpd, down -9% m/m and the lowest daily average in eleven months.

Oil prices were undercut Monday when Saudi Energy Minister Abdulaziz bin Salman Al Saud said “the jury is still out” on Chinese oil demand.  Also, Saudi national oil company Aramco on Monday pared its outlook for longer-term 2030 oil demand to 110 million bpd, versus the 125 million bpd it expected in 2010.  The IEA is projecting an even lower 2030 demand of 105 million bpd due to the energy transition.  Shorter-term Aramco is forecasting record consumption of 103-104 million bpd in the second half of 2023.

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 -8.9% w/w to 83.89 million bbl as of Sep 15.

The U.S. and Iran on Monday announced a prisoner exchange and the unlocking of $6 billion of Iranian funds.  Improved U.S.-Iran relations could result in the eventual resumption of nuclear talks, with any deal leading to relaxed Iran sanctions and increased Iranian oil exports.  According to TankerTrackers.com, Iranian crude exports rose to a 5-year high of 2.2 million bpd during the first 20 days of August, with most of the crude going to China.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 15 were -2.9% below the seasonal 5-year average, (2) gasoline inventories were -2.7% below the seasonal 5-year average, and (3) distillate inventories were -15.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 15 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 Sep 15 rose +2 to 515 rigs, just above the 17-month low of 512 rigs from Sep 1.  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

SEP 22 AFTER 14:00

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