Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Thursday will JUMP up 9 Cents ~Be Safe

NMEX Crude      $ 90.28 DN $.9200

NYMEX ULSD     $3.3268 DN $.0471

NYMEX Gas       $2.6392 DN $.0389

NEWS

October WTI crude oil on Wednesday closed down -0.92 (-1.01%), and Oct RBOB gasoline  closed down -3.89 (-1.46%).

Oct WTI crude oil and gasoline prices Wednesday gave up early gains and posted moderate losses after the Federal Reserve raised its estimate for interest rates next year, which helped the dollar recover and may keep economic growth and energy demand subdued.  Crude prices Wednesday initially moved higher on a weaker dollar and a bullish weekly EIA inventory report.

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 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 weekly EIA report was bullish for crude oil and products.  EIA crude inventories fell -2.14 million bbl, a larger draw than expectations of -1.7 million bbl.  Also, EIA gasoline supplies unexpectedly fell -831,000 bbl versus expectations of a +1.1 million bbl build.  In addition, EIA distillate stockpiles unexpectedly fell -2.87 million bbl versus expectations of a +1.05 million bbl build.  Finally, crude supplies at Cushing, the delivery point of WTI futures, fell -2.0 million bbl to a 14-month low.

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

Fueling Strategy: Please “PARTIAL FILL ONLY” tonight, Wednesday prices will drop 9.5 cents so “KEEP YOUR TANKS TOPPED”,Thursday prices will go back UP 9 cents ~Be Safe

NMEX Crude      $ 91.20 DN $.2800

NYMEX ULSD     $3.3739 UP $.0856

NYMEX Gas       $2.6581 DN $.0398

NEWS

October WTI crude oil on Tuesday closed -0.28 (-0.31%), and Oct RBOB gasoline closed -3.98 (-1.48%).

Oct WTI crude oil prices on Tuesday climbed to a new 10-1/2 month high on the nearest-futures chart, extending the rally seen in the past three months driven by expectations for a tight supply outlook through year-end.  However, crude oil prices fell back later in the session on long liquidation pressure and some concern about the global economy.  Tuesday’s U.S. housing starts report showed a -11.3% decline, and the OECD cut its global 2024 GDP forecast to +2.7% from +3.0%.

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.  OPEC last Tuesday projected 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 “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 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.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 8 were -2.9% below the seasonal 5-year average, (2) gasoline inventories were -2.5% below the seasonal 5-year average, and (3) distillate inventories were -12.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 8 rose +0.8% w/w to 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

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

NMEX Crude      $ 91.48 UP $.7100

NYMEX ULSD     $3.2883 DN $.0951

NYMEX Gas       $2.6979 DN $.0102

NEWS

October WTI crude oil Monday closed +0.71 (+0.78%), and Oct RBOB gasoline closed -1.02 (-0.38%). Oct WTI crude oil prices Monday climbed to a new 11-month high, extending the rally seen in the past three months driven by expectations for a tight supply outlook through year-end.

However, oil prices were undercut by comments Monday by Saudi Energy Minister Abdulazia bin Salman Al Saud, who said the “the jury is still out” on Chinese oil demand.  Also, Saudi national oil company Aramco 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 lower 2030 demand of 105 million bpd due to the energy transition.  Aramco is forecasting record consumption of 103-104 million bpd in the second half of 2023.

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.  OPEC last Tuesday projected 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.

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 in 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 8 were -2.9% below the seasonal 5-year average, (2) gasoline inventories were -2.5% below the seasonal 5-year average, and (3) distillate inventories were -12.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 8 rose +0.8% w/w to 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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Saturday look for another 5 Cents Jump UP but will DROP 10 Cents Sunday~Be Safe

NMEX Crude      $ 90.77 UP $.6100

NYMEX ULSD     $3.3834 DN $.0981

NYMEX Gas       $2.7081 DN $.0346

NEWS

October WTI crude oil on Friday closed up +0.61 (+0.68%), and Oct RBOB gasoline closed down -3.46 (-1.26%). Crude oil and gasoline prices on Friday settled mixed, with crude climbing to a 10-1/4 month high.  Dollar weakness Friday was supportive of energy prices.   Also, stronger-than-expected economic reports from China, the world’s second-largest crude consumer, support energy demand and prices.  In addition, crude has carryover support from Tuesday when the International Energy Agency (IEA) and OPEC said the global oil market will be in deficit through year-end.  On the bearish side was Friday’s slump in stocks, which undercut confidence in the economic outlook and energy demand.

Friday’s economic news from China was better than expected and supported energy demand and crude prices.  China Aug industrial production rose +4.5% y/y, stronger than expectations of +3.9% y/y and the biggest increase in 4 months.  Also, China Aug retail sales rose +4.6% y/y, stronger than expectations of +3.0% y/y.

U.S. economic news Friday was mixed for energy prices.  On the bullish side, Aug industrial production rose +0.4% m/m, stronger than expectations of +0.1% m/m.  Also, the Sep Empire manufacturing survey general business conditions rose +20.9 to 1.9, stronger than expectations of -10.0.  On the bearish side, the University of Michigan U.S. Sep consumer sentiment fell -1.8 to 67.7, weaker than expectations of 69.0.

Crude found support Tuesday after the monthly report from OPEC projected 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) on 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 global crude market continues to tighten and underpin oil prices after Saudi Arabia last Tuesday 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.  Also, last Tuesday, Russia announced it would maintain its 300,000 bpd cut in crude production through December. A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in August dropped to 2.28 million bpd, down -9% m/m and the lowest daily average in eleven months. 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 -5.8% w/w to 81.02 million bbl as of Sep 8, the lowest in 9 months.

An increase in Iranian crude exports is boosting global supplies and is bearish for oil prices.  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. A negative factor for crude prices is the progress made in Iran-U.S. relations that could lead to higher crude exports from Iran after Iran said the recent deal with the U.S. on the release of prisoners and frozen Iranian funds could lead to diplomacy in other areas, including its nuclear program.  An agreement on Iran’s nuclear program could eventually prompt the U.S. and its allies to remove sanctions on Iranian crude exports, boosting global crude supplies. A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s July crude oil imports fell -6.3% y/y to 19.3 MMT, the lowest in 8 months.

OPEC crude production in August was little changed, rising +40,000 bpd to 27.82 million bpd, recovering slightly from July’s  1-3/4 year low of 27.78 million bpd. Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 8 were -2.9% below the seasonal 5-year average, (2) gasoline inventories were -2.5% below the seasonal 5-year average, and (3) distillate inventories were -12.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 8 rose +0.8% w/w to 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 15 rose +21 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 are more than triple 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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Friday prices will JUMP UP 11 cents then Saturday look for another 5 Cents Jump UP~Be Safe

NMEX Crude      $ 90.16 UP $1.6400

NYMEX ULSD     $3.4815 UP $0.0461

NYMEX Gas       $2.7427 UP $0.0043

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

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Thursday prices will drop 3.5 cents ~Be Safe

NMEX Crude      $ 88.52 DN $.3200

NYMEX ULSD     $3.4354 UP $.1071

NYMEX Gas       $2.7384 UP $.0105

 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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Wednesday prices will JUMP UP 6.5 cents ~Be Safe

NMEX Crude      $ 88.84 UP $1.5500

NYMEX ULSD     $3.3283 DN $0.0339

NYMEX Gas       $2.7279 UP $0.0092

NEWS

NEW YORK, Sept 12 (Reuters) – Oil prices jumped about 2% to a near 10-month high on Tuesday on a tighter supply outlook and OPEC optimism over the resilience of energy demand in major economies. Brent futures rose $1.42 or 1.6%, to settle at $92.06 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.55, or 1.8%, to settle at $88.84. Both benchmarks remained technically overbought for an eighth straight day, and closed at their highest levels since November 2022.

The Organization of the Petroleum Exporting Countries (OPEC) stuck to its forecasts for robust growth in global oil demand in 2023 and 2024, citing signs that major economies are stronger than expected. OPEC’s monthly report forecast world oil demand will rise by 2.25 million barrels per day (bpd) in 2024. “Crude prices are rallying after the OPEC monthly report showed the oil market is going to be a lot tighter than initially thought,” Edward Moya, senior market analyst at data and analytics firm OANDA, said in a note.

Keeping supplies tight, Saudi Arabia and Russia last week extended voluntary supply cuts of a combined 1.3 million bpd to year end. OPEC, Russia and allied producers are known as OPEC+. OPEC member Libya shut four of its eastern oil export terminals due to a deadly storm, while OPEC+ member Kazakhstan reduced daily oil output for maintenance. The U.S. Energy Information Administration (EIA) projected global oil output would rise from 99.9 million bpd in 2022 to 101.2 million bpd in 2023 and 102.9 million bpd in 2024, while world demand will rise from 99.2 million bpd in 2022 to 101.0 million bpd in 2023 and 102.3 million bpd in 2024.

That compares with a record 100.5 million bpd of global oil production in 2018 and a record 100.8 million bpd of world liquids consumption in 2019, according to the EIA’s Short Term Energy Outlook. EIA said it expects global oil inventories to decline by almost a half million bpd in the second half of 2023, causing oil prices to rise with Brent averaging $93 per barrel in the fourth quarter. In the U.S., EIA projected crude output would rise from 11.9 million bpd in 2022 to 12.8 million bpd in 2023 and 13.2 million bpd in 2024, while liquids consumption would rise from 20.0 million bpd in 2022 to 20.1 million bpd in 2023 and 20.3 million bpd in 2024. That compares with a record 12.3 million bpd of U.S. crude production in 2019 and a record 20.8 million bpd of liquids consumption in 2005.

Looking ahead, oil traders are waiting for supply-demand forecasts from the International Energy Agency (IEA) on Wednesday, and U.S. oil inventory data from the American Petroleum Institute (API), an industry group, on Tuesday and from EIA on Wednesday. Analysts polled by Reuters forecast a draw of about 1.9 million barrels of crude from U.S. stockpiles during the week ended Sept. 8. That would be the fifth straight weekly draw, the longest such streak since January 2022.

INTEREST RATES AND INFLATION

U.S. consumer price index data for August on Wednesday should hint at the outlook for interest rates. The Federal Reserve is expected to leave rates unchanged at a policy meeting next week, though views are split over whether it will raise rates in November. The European Central Bank will announce its interest rate decision on Thursday. Interest rate hikes can slow economic growth and reduce oil demand.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

SEP 14th  & 15th All Day

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

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

NMEX Crude      $ 87.29 DN $.2200

NYMEX ULSD     $3.3622 UP $.0631

NYMEX Gas       $2.7187 UP $.0650

NEWS

October WTI crude oil on Monday closed down -0.22 (-0.25%), and Oct RBOB gasoline closed up +6.50 (+2.45%).

Crude oil and gasoline prices Monday settled mixed, with gasoline posting a 2-week high.  Crude fell back from a 9-3/4 month high Monday on global energy demand concerns after the European Commission cut its 2023 Eurozone GDP forecast to +0.8% from +1.1%.

On the bullish side, a weaker dollar Monday supported energy prices.  Also, crude has carryover support from last Tuesday when Saudi Arabia and Russia announced that they would extend their respective crude production cuts until the end of the year.

A supportive factor for crude was news of more robust credit demand in China, the world’s second-largest crude consumer, which may lead to stronger economic growth and energy demand.  China’s new yuan loans in August were 1.36 trillion yuan, above expectations of +1.25 trillion yuan.  Also, August aggregate financing, the broadest measure of credit growth, rose +3.12 trillion yuan, stronger than expectations of +2.69 trillion yuan.

Crude prices found support after Saudi Arabia last Tuesday 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.  Also, last Tuesday, Russia announced it would maintain its 300,000 bpd cut in crude production through December.

Strength in the crude crack spread is bullish for oil prices as the crack spread Monday climbed to a nearly 2-week high.  The higher crack spread encourages refiners to boost their crude purchases and refine the crude into gasoline and distillates.

An increase in Iranian crude exports is boosting global supplies and is bearish for oil prices.  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.

A negative factor for crude prices is the progress made in Iran-U.S. relations that could lead to higher crude exports from Iran after Iran said the recent deal with the U.S. on the release of prisoners and frozen Iranian funds could lead to diplomacy in other areas, including its nuclear program.  An agreement on Iran’s nuclear program could eventually prompt the U.S. and its allies to remove sanctions on Iranian crude exports, boosting global crude supplies.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s July crude oil imports fell -6.3% y/y to 19.3 MMT, the lowest in 8 months.

OPEC crude production in August was little changed, rising +40,000 bpd to 27.82 million bpd, recovering slightly from July’s  1-3/4 year low of 27.78 million bpd.

A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in August dropped to 2.28 million bpd, down -9% m/m and the lowest daily average in eleven months.

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 -5.8% w/w to 81.02 million bbl as of Sep 8, the lowest in 9 months.

Last Thursday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 1 were -4.2% below the seasonal 5-year average, (2) gasoline inventories were -5.9% below the seasonal 5-year average, and (3) distillate inventories were -14.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 1 was unchanged w/w at 12.8 million bpd, the most in over three 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 8 rose +1 to 513 rigs, just above the previous week’s 17-month low of 512 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 are more than triple 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 14th  & 15th All Day

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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” tonight, Saturday prices will JUMP UP 2 cents ~Be Safe

NMEX Crude      $ 87.51 UP $.6400

NYMEX ULSD     $3.2991 UP $.0868

NYMEX Gas       $2.6537 UP $.0307

NEWS

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 -0.9% w/w to 84.97 million bbl as of Sep 1, the lowest in 7 months.

Thursday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 1 were -4.2% below the seasonal 5-year average, (2) gasoline inventories were -5.9% below the seasonal 5-year average, and (3) distillate inventories were -14.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 1 was unchanged w/w at 12.8 million bpd, the most in over three 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 8 rose +1 to 513 rigs, just above the previous week’s 17-month low of 512 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 are more than triple 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 08 AFTER 15:00

SEP 14 AFTER 14:00

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

Fueling Strategy: Please “PARTIAL FILL ONLY” tonight, Friday prices will drop 3 cents the Saturday prices will go back UP 2 cents ~Be Safe

NMEX Crude      $ 86.87 DN $.6700

NYMEX ULSD     $3.2123 UP $.0196

NYMEX Gas       $2.6230 UP $.0216

NEWS

October WTI crude oil on Thursday closed down -0.67 (-0.77%), and Oct RBOB gasoline  closed up +2.16 (+0.83%).

Crude oil and gasoline prices Thursday settled mixed, with gasoline posting a 1-1/2 week high.  Crude prices gave up an early advance and moved lower on dollar strength and energy demand concerns.  The dollar index Thursday rallied to a 5-3/4 month high, and global economic news was mostly weaker than expected, signaling reduced energy demand.

Crude oil prices had carryover support from Tuesday when Saudi Arabia and Russia announced that they will extend their respective crude production cuts until the end of the year.  Crude prices also have support from Thursday’s bullish EIA report that showed U.S. crude inventories fell more than expected to a 9-month low.

Crude prices found support after Saudi Arabia on Tuesday 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.  Also, Russia on Tuesday announced it would also maintain its 300,000 bpd cut in crude production through December.

Thursday’s global economic news was mixed for energy demand and crude prices.  On the bearish side, Eurozone Q2 GDP was revised lower to +0.1% q/q and +0.5% y/y from the previously reported +0.3% q/q and +0.6% y/y.  Also, German July industrial production fell -0.8% m/m, weaker than expectations of -0.4% y/y.  On the positive side, U.S. weekly jobless claims unexpectedly fell -13,000 to a 7-month low of 216,000, showing a stronger labor market than expectations of an increase to 233,000.

An increase in Iranian crude exports is boosting global supplies and is bearish for oil prices.  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.

A negative factor for crude prices is the progress made in Iran-U.S. relations that could lead to higher crude exports from Iran after Iran said the recent deal with the U.S. on the release of prisoners and frozen Iranian funds could lead to diplomacy in other areas, including its nuclear program.  An agreement on Iran’s nuclear program could eventually prompt the U.S. and its allies to remove sanctions on Iranian crude exports, boosting global crude supplies.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s July crude oil imports fell -6.3% y/y to 19.3 MMT, the lowest in 8 months.

OPEC crude production in August was little changed, rising +40,000 bpd to 27.82 million bpd, recovering slightly from July’s  1-3/4 year low of 27.78 million bpd.

A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in the four weeks to Aug 18 dropped to 2.29 million bpd, the lowest daily average in ten months.

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 -0.9% w/w to 84.97 million bbl as of Sep 1, the lowest in 7 months.

Thursday’s weekly EIA report was bullish for crude prices.  EIA crude inventories fell -6.31 million bbl to a 9-month low, a bigger draw than expectations of -2.0 million bbl.  Also, EIA gasoline supplies fell -2.67 million bbl to a 10-month low, a larger draw than expectations of -1.0 million bbl.  In addition, crude stockpiles at Cushing, the delivery point of WTI futures, fell -1.75 million bbl to an 8-month low.

Thursday’s EIA report showed that (1) U.S. crude oil inventories as of Sep 1 were -4.2% below the seasonal 5-year average, (2) gasoline inventories were -5.9% below the seasonal 5-year average, and (3) distillate inventories were -14.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended Sep 1 was unchanged w/w at 12.8 million bpd, the most in over three 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 1 were unchanged at a 17-month low of 512 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 are more than triple 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 08 AFTER 15:00

SEP 14 AFTER 14:00

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