Fueling Strategy: Please “FILL AS NEEDED” tonight, Plan on Thursday’s 2 Cent Drop ~ Be Safe

NMEX Crude      $ 69.38 DN $2.9400

NYMEX ULSD     $2.5762 DN $0.0649

NYMEX Gas       $2.0302 DN $0.0801

NEWS

January WTI crude oil on Wednesday closed down -2.94 (-4.07%), and Jan RBOB gasoline closed down -0.0801 (-3.80%). Crude oil and gasoline prices on Wednesday sold off sharply, with crude falling to a 5-month low and gasoline tumbling to a 1-year low.  Concern about excess global crude supplies is weighing on prices.  Also, doubts about whether OPEC+ crude production cuts will be adhered to are bearish for prices.  Crude prices fell Wednesday despite a larger-than-expected draw in weekly EIA crude inventories, as gasoline and distillate supplies rose more than expected. Signs of increasing U.S. crude exports are negative for prices as ship-tracking firms Kpler and Vortexa project that U.S. crude exports will soon reach a record 5.7 million bpd.

Wednesday’s global economic news was weaker than expected and was bearish for crude demand and prices.  The U.S. Nov ADP employment change rose +103,000, weaker than expectations of +130,000.  Also, German Oct factory orders unexpectedly fell -3.7% m/m, weaker than expectations of +0.2% m/m.  In addition, the German Nov S&P construction PMI fell -2.1 to 36.2, the weakest level since the data series began in 2020. A bearish factor for crude was Tuesday’s action by Saudi Arabia to cut the price of its flagship Arab light crude to Asian customers for January delivery by 50 cents to $3.50 a barrel more than the benchmark, the first cut in prices since June but below expectations of a -$1.05 a barrel cut in prices.

Last Thursday, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, crude prices sold off on the news since no details were provided on how the cuts would be distributed among members nor how Russia’s -300,000 bpd export cut would factor into the new totals.  Delegates said the final details of the new accord, including national production levels, would be announced individually by each country rather than in the customary OPEC+ communique.  The market was disappointed that the extra cuts in OPEC crude output will be announced by each individual country, which suggests the cuts may only be voluntary. Saudi Arabia said last Thursday it would maintain its unilateral crude production cut of 1.0 million bpd through Q1-2024.  The move would maintain Saudi Arabia’s crude output at about 9 million bpd, the lowest level in three years.  Russia also said last Thursday that it will deepen its voluntary oil export cuts by 200,000 bpd to 500,000 bpd in Q1 of 2024.  OPEC Nov crude production fell -140,000 bpd to 28.050 million bpd.

The rift between Angola and other OPEC+ members remains and is a bearish factor that signals more infighting among members.  Angola OPEC governor Pedro said last Thursday that his country rejects OPEC’s quota and “Angola will produce above the quota determined by OPEC.”  Angola is Africa’s second-largest crude producer, and OPEC governor Pedro said his country will pump 1.18 million bpd in January, above the 1.11 million quota set out by OPEC. A supportive factor for crude was Tuesday’s comment from Russian Deputy Prime Minister Novak, who said, “In case the current actions are not enough, OPEC+ countries will take additional steps to avoid speculations and volatility.” On Monday, Saudi Energy Minister Prince Abdulaziz bin Salman said Saudi Arabia’s crude production curbs could “absolutely” continue past March of next year.

Oil prices have support by concern that attacks on oil tankers in the Middle East may disrupt crude oil supplies.  The U.S. Central Command said there were four attacks by missiles and drones against three separate commercial vessels on Sunday operating in international waters in the Red Sea.  Iranian-backed Houthi rebels claimed responsibility for the attacks after they issued a threat against ships with ties to Israel last month, calling them “legitimate targets.”

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 -24% w/w to 68.62 million bbl as of Dec 1.

An increase in Russian crude exports is bearish for oil prices.  Tanker-tracking data monitored by Bloomberg shows 3.24 million bpd of crude was shipped from Russian ports in the week to Nov 26, up +370,000 bpd from the prior week and near the highest in four months.

Wednesday’s weekly EIA report was mixed for crude and products.  On the bearish side, EIA gasoline supplies rose +5.42 million bbl, well above expectations of +1.34 million bbl.  Also, EIA distillate stockpiles rose +1.27 million bbl, more than expectations of +1.1 million bbl.  In addition, crude supplies at Cushing, the delivery point of WTI futures, rose +1.83 million bbl.  On the bullish side, EIA crude inventories fell -4.63 million bbl, a bigger draw than expectations of -1.6 million bbl.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Dec 1 were right on the seasonal 5-year average, (2) gasoline inventories were -0.5% below the seasonal 5-year average, and (3) distillate inventories were -11.6% below the 5-year seasonal average.  U.S. crude oil production in the week ending Dec 1 fell -0.8% m/m to 13.1 million bpd, just below the previous week’s record high of 13.2 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Dec 1 rose by +5 rigs to 505 rigs, modestly above the 1-3/4 year low of 494 rigs from Nov 10.  The number of U.S. oil rigs has fallen this year after moving sharply higher during 2021-22 from the 18-year pandemic low of 172 rigs posted in Aug 2020 to a 3-1/2 year high of 627 rigs in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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~Be Safe

NMEX Crude      $ 72.32 DN $.7200

NYMEX ULSD     $2.6411 DN $.0186

NYMEX Gas       $2.1103 DN $.0239

NEWS

January WTI crude oil on Tuesday closed down -0.72 (-0.99%), and Jan RBOB gasoline closed down -0.0239 (-1.12%).

Crude oil and gasoline prices Tuesday gave up early gains and moved lower, with crude falling to a 3-week low.  Ramped-up U.S. crude exports are weighing on oil prices.  Also, Tuesday’s rally in the dollar index (DXY00) to a 1-1/2 week high was bearish for crude.  In addition, Tuesday’s action by Saudi Arabia to cut its official crude selling prices to Asian customers for January delivery is negative for crude.   Crude price Tuesday initially moved higher after Russian Deputy Prime Minister Novak said OPEC+ could take further measures if last week’s production cuts fail to balance the oil market. Crude prices shed an early advance Tuesday and moved lower on signs of increasing U.S. crude exports after ship-tracking firms Kpler and Vortexa projected U.S. crude exports for the week ended Dec 1 could reach a record 5.7 million bpd.

Tuesday’s global economic news was mixed for crude demand and prices.  On the bearish side, the Oct JOLTS job openings fell -617,000 to a 2-1/2 year low of  8.733 million, showing a weaker labor market than expectations of 9.300 million.  Also, the Japan Nov Jibun Bank services PMI was revised downward by -0.9 to 50.8 from the previously reported 51.7.  On the bullish side, the U.S. Nov ISM services index rose +0.9 to 52.7, stronger than expectations of 52.3.  Also, the China Nov Caixin services PMI rose +1.1 to 51.5, stronger than expectations of 50.5.  In addition, the Eurozone Nov S&P composite PMI was revised upward by +0.5 to 47.6 from the previously reported 47.1.

A bearish factor for crude was Tuesday’s action by Saudi Arabia to cut the price of its flagship Arab light crude to Asian customers for January delivery by 50 cents to $3.50 a barrel more than the benchmark, the first cut in prices since June but below expectations of a -$1.05 a barrel cut in prices.

Crude prices Tuesday found temporary support on comments from Russian Deputy Prime Minister Novak, who said, “In case the current actions are not enough, OPEC+ countries will take additional steps to avoid speculations and volatility.” On Monday, Saudi Energy Minister Prince Abdulaziz bin Salman said Saudi Arabia’s crude production curbs could “absolutely” continue past March of next year.

Oil prices have support by concern that attacks on oil tankers in the Middle East may disrupt crude oil supplies.  The U.S. Central Command said there were four attacks by missiles and drones against three separate commercial vessels on Sunday operating in international waters in the Red Sea.  Iranian-backed Houthi rebels claimed responsibility for the attacks after they issued a threat against ships with ties to Israel last month, calling them “legitimate targets.”

Last Thursday, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, crude prices sold off on the news and remained under pressure Friday since no details were provided on how the cuts would be distributed among members nor how Russia’s -300,000 bpd export cut would factor into the new totals.  Delegates said the final details of the new accord, including national production levels, would be announced individually by each country rather than in the customary OPEC+ communique.  The market was disappointed that the extra cuts in OPEC crude output will be announced by each individual country, which suggests the cuts may only be voluntary.

Saudi Arabia said last Thursday it would maintain its unilateral crude production cut of 1.0 million bpd through Q1-2024.  The move would maintain Saudi Arabia’s crude output at about 9 million bpd, the lowest level in three years.  Russia also said last Thursday that it will deepen its voluntary oil export cuts by 200,000 bpd to 500,000 bpd in Q1 of 2024.  OPEC Nov crude production fell -140,000 bpd to 28.050 million bpd. The rift between Angola and other OPEC+ members remains and is a bearish factor that signals more infighting among members.  Angola OPEC governor Pedro said last Thursday that his country rejects OPEC’s quota and “Angola will produce above the quota determined by OPEC.”  Angola is Africa’s second-largest crude producer, and OPEC governor Pedro said his country will pump 1.18 million bpd in January, above the 1.11 million quota set out by OPEC.

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 -24% w/w to 68.62 million bbl as of Dec 1.

An increase in Russian crude exports is bearish for oil prices.  Tanker-tracking data monitored by Bloomberg shows 3.24 million bpd of crude was shipped from Russian ports in the week to Nov 26, up +370,000 bpd from the prior week and near the highest in four months.

The consensus is that Wednesday’s weekly EIA crude inventories will fall by -1.6 million bbl. Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Nov 24 were +0.2% above the seasonal 5-year average, (2) gasoline inventories were -1.4% below the seasonal 5-year average, and (3) distillate inventories were -10.0% below the 5-year seasonal average.  U.S. crude oil production in the week ending Nov 24 was unchanged at a record high of 13.2 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Dec 1 rose by +5 rigs to 505 rigs, modestly above the 1-3/4 year low of 494 rigs from Nov 10.  The number of U.S. oil rigs has fallen this year after moving sharply higher during 2021-22 from the 18-year pandemic low of 172 rigs posted in Aug 2020 to a 3-1/2 year high of 627 rigs in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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~Be Safe

NMEX Crude      $ 73.04 DN $1.0300

NYMEX ULSD     $2.6597 DN $0.0018

NYMEX Gas       $2.1342 UP $0.0131

NEWS

January WTI crude oil on Monday closed down -1.03 (-1.39%), and Jan RBOB gasoline closed up +0.0210 (+0.99%).

Crude oil and gasoline prices on Monday settled mixed, with crude falling to a 2-week low.  Monday’s rally in the dollar index to a 1-week high was bearish for energy prices.  Crude oil was also under pressure on negative carryover from last Thursday when OPEC+ said it would cut its crude production level by -1.0 million bpd but did not provide details on how the cuts would be implemented. However, crude prices recovered from their worst levels, and gasoline prices turned positive after Saudi Energy Minister Prince Abdulaziz bin Salman said Saudi Arabia’s crude production curbs could “absolutely” continue past March of next year.

Oil prices have support by concern that attacks on oil tankers in the Middle East may disrupt crude oil supplies.  The U.S. Central Command said there were four attacks by missiles and drones against three separate commercial vessels on Sunday operating in international waters in the Red Sea.  Iranian-backed Houthi rebels claimed responsibility for the attacks after they issued a threat against ships with ties to Israel last month, calling them “legitimate targets.”

Monday’s global economic news was weaker than expected and was bearish for crude demand and prices.  U.S. Oct factory orders fell -3.6% m/m, weaker than expectations of -3.0% m/m and the biggest decline in 3-1/2 years.  Also, German Oct exports unexpectedly fell -0.2% m/m, weaker than expectations of +1.1% m/m, and German Oct imports fell -1.2% m/m, weaker than expectations of +0.8 % m/m.

Last Thursday, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, crude prices sold off on the news and remained under pressure Friday since no details were provided on how the cuts would be distributed among members nor how Russia’s -300,000 bpd export cut would factor into the new totals.  Delegates said the final details of the new accord, including national production levels, would be announced individually by each country rather than in the customary OPEC+ communique.  The market was disappointed that the extra cuts in OPEC crude output will be announced by each individual country, which suggests the cuts may only be voluntary. Saudi Arabia said last Thursday it would maintain its unilateral crude production cut of 1.0 million bpd through Q1-2024.  The move would maintain Saudi Arabia’s crude output at about 9 million bpd, the lowest level in three years.  Russia also said last Thursday that it will deepen its voluntary oil export cuts by 200,000 bpd to 500,000 bpd in Q1 of 2024.  OPEC Nov crude production fell -140,000 bpd to 28.050 million bpd.

The rift between Angola and other OPEC+ members remains and is a bearish factor that signals more infighting among members.  Angola OPEC governor Pedro said last Thursday that his country rejects OPEC’s quota and “Angola will produce above the quota determined by OPEC.”  Angola is Africa’s second-largest crude producer, and OPEC governor Pedro said his country will pump 1.18 million bpd in January, above the 1.11 million quota set out by OPEC.

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 -24% w/w to 68.62 million bbl as of Dec 1.

An increase in Russian crude exports is bearish for oil prices.  Tanker-tracking data monitored by Bloomberg shows 3.24 million bpd of crude was shipped from Russian ports in the week to Nov 26, up +370,000 bpd from the prior week and near the highest in four months.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Nov 24 were +0.2% above the seasonal 5-year average, (2) gasoline inventories were -1.4% below the seasonal 5-year average, and (3) distillate inventories were -10.0% below the 5-year seasonal average.  U.S. crude oil production in the week ending Nov 24 was unchanged at a record high of 13.2 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Dec 1 rose by +5 rigs to 505 rigs, modestly above the 1-3/4 year low of 494 rigs from Nov 10.  The number of U.S. oil rigs has fallen this year after moving sharply higher during 2021-22 from the 18-year pandemic low of 172 rigs posted in Aug 2020 to a 3-1/2 year high of 627 rigs in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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 “PARTIAL FILL ONLY” tonight, Saturday prices will DROP another 6 Cents then Sunday look for prices to drop almost 10 Cents ~ Be Safe

NMEX Crude       $ 74.07 DN $1.8900

NYMEX ULSD     $2.6615 DN $0.0927

NYMEX Gas         $2.1211 DN $0.0547

NEWS

January WTI crude oil on Friday closed down -1.57 (-2.07%), and Jan RBOB gasoline closed down -0.0547 (-2.51%).

Crude oil and gasoline prices Friday gave up an early advance and sold off, with crude falling to a 1-week low.  Crude prices were under pressure on negative carryover from Thursday when OPEC+ said it would cut its crude production level by -1.0 million bpd but did not provide details on how the cuts would be implemented.  Also, concerns that economic activity in the U.S. is slowing weighed on energy prices after Friday’s U.S. Nov ISM manufacturing report contracted more than expected.  Crude price Friday initially opened higher on a weak dollar and after a gauge of Chinese manufacturing activity unexpectedly expanded last month, a positive for energy demand.

Friday’s global manufacturing news was mixed for crude demand and prices.  On the bearish side, the U.S. Nov ISM manufacturing index was unchanged at 46.7, weaker than expectations of an increase to 47.8 and the 13th consecutive month of contraction in manufacturing activity.  On the bullish side, the China Nov Caixin manufacturing PMI rose +1.2 to 50.7, stronger than expectations of 49.6.  Also, the Eurozone Nov S&P manufacturing PMI was revised upward by +0.4 to 44.2 from the initially reported 43.8.  In addition, the Japan Nov Jibun Bank manufacturing PMI was revised upward by +0.2 to 48.3 from the previously reported 48.1.

On Thursday, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024.  However, crude prices sold off on the news and remained under pressure Friday since no details were provided on how the cuts would be distributed among members nor how Russia’s -300,000 bpd export cut would factor into the new totals.  Delegates said the final details of the new accord, including national production levels, would be announced individually by each country rather than in the customary OPEC+ communique.  The market is disappointed that the extra cuts in OPEC crude output will be announced by each individual country, which suggests the cuts may only be voluntary.

Saudi Arabia said Thursday it would maintain its unilateral crude production cut of 1.0 million bpd through Q1 of 2024.  The move would maintain Saudi Arabia’s crude output at about 9 million bpd, the lowest level in three years.  Russia also said Thursday that it will deepen its voluntary oil export cuts by 200,000 bpd to 500,000 bpd in Q1 of 2024.  OPEC Nov crude production fell -140,000 bpd to 28.050 million bpd. The rift between Angola and other OPEC+ members remains and is a bearish factor that signals more infighting among members.  Angola OPEC governor Pedro said Thursday that his country rejects OPEC’s quota and “Angola will produce above the quota determined by OPEC.”  Angola is Africa’s second-largest crude producer, and OPEC governor Pedro said his country will pump 1.18 million bpd in January, above the 1.11 million quota set out by OPEC.

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 -2.9% w/w to 86.52 million bbl as of Nov 24.

Increased crude consumption in India, the world’s third largest crude consumer, is bullish for oil prices after India’s oil product consumption in October rose +3.7% y/y to 19.3 MMT, the highest five months.

An increase in Russian crude exports is bearish for oil prices.  Tanker-tracking data monitored by Bloomberg shows 3.24 million bpd of crude was shipped from Russian ports in the week to Nov 26, up +370,000 bpd from the prior week and near the highest in four months.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Nov 24 were +0.2% above the seasonal 5-year average, (2) gasoline inventories were -1.4% below the seasonal 5-year average, and (3) distillate inventories were -10.0% below the 5-year seasonal average.  U.S. crude oil production in the week ending Nov 24 was unchanged at a record high of 13.2 million bpd.

Baker Hughes reported Friday that active U.S. oil rigs in the week ended Dec 1 rose by +5 rigs to 505 rigs, modestly above the 1-3/4 year low of 494 rigs from Nov 10.  The number of U.S. oil rigs has fallen this year after moving sharply higher during 2021-22 from the 18-year pandemic low of 172 rigs posted in Aug 2020 to a 3-1/2 year high of 627 rigs in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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 “PARTIAL FILL ONLY” today due to Friday wholesale prices will DROP 2 Cents then Saturday look for a 6 cents drop in prices ~ Be Safe

NMEX Crude      $ 75.96 DN $1.9000

NYMEX ULSD     $2.8305 DN $0.0580

NYMEX Gas       $2.1998 DN $0.0838

NEWS

Nov 30 (Reuters) – Oil prices fell by more than 2% on Thursday after OPEC+ producers agreed to voluntary oil output cuts for the first quarter next year that fell short of market expectations.

Brent crude futures for January settled 27 cents, or 0.3%, lower to expire at $82.83 a barrel, and a 5.2% loss for the month. The February contract , which begins trading as the front month on Friday, fell $2.00, or 2.4%, to $80.86.

U.S. West Texas Intermediate crude futures settled down $1.90, or 2.4%, to $75.96, and down 6.2% in November.

Saudi Arabia, Russia and other members of OPEC+, who pump more than 40% of the world’s oil, agreed to voluntary output cuts approaching 2 million barrels per day (bpd) for the first quarter of 2024.

At least 1.3 million bpd of those cuts, however, were an extension of voluntary curbs that Saudi Arabia and Russia already had in place. Earlier, delegates had said new additional cuts under discussion were as much as 2 million bpd.

“For now, the outcome does not live up to the expectation… in recent days,” said Callum MacPherson, head of commodities at Investec.

The voluntary nature of the cuts left investors nonplussed.

“From what we’ve seen so far, this looks like a paper cut of around 600-700,000 barrels per day (bpd) vs Q4 2023 planned levels,” said James Davis at FGE.

“It could at best be an actual cut of around 500,000 bpd compared to Q4. This might be just enough to keep the market balanced in Q1, but it will be close.”

audi Arabia, Russia, Kuwait, Kazakhstan and Algeria were among producers who said cuts would be unwound gradually after the first quarter, market conditions permitting.

The meeting, being held on the same day as global leaders gather in Dubai for the U.N. climate conference, was originally scheduled for last week but was deferred because of disagreements over output quotas for African producers.

OPEC+ also invited Brazil, a top 10 oil producer, to become a member of the group. The country’s energy minister said it hoped to join in January.

Meanwhile crude output in the U.S., the world’s top producer, continued to grow, rising 1.7% in September to a monthly record of 13.24 million bpd, the Energy Information Administration said.

Crude production in Texas fell by 0.1% to 5.57 million bpd, the lowest since July and the first time production in the state has fallen since April, the EIA said.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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 “KEEP YOUR TANKS TOPPED” today/tonight, Thursday prices will jump UP 7 Cents~Be Safe

NMEX Crude      $ 77.86 UP $1.4500

NYMEX ULSD     $2.8885 DN $0.0185

NYMEX Gas       $2.2836 UP $0.0536

NEWS

January WTI crude oil on Wednesday closed up +1.45 (+1.90%), and Jan RBOB gasoline closed up +0.0547 (+2.49%). Crude oil and gasoline prices Wednesday posted moderate gains, with crude climbing to a 1-week high and gasoline climbing to a 2-week high.  Crude has support on signs of U.S. economic strength after U.S. Q3 GDP expanded more than expected.  Also, short covering ahead of  Thursday’s OPEC+ meeting is lifting crude prices.  Crude prices rallied Wednesday despite a stronger dollar and a bearish EIA inventory report.

Wednesday’s global economic news was stronger than expected and bullish for energy demand and crude prices.  U.S. Q3 GDP was revised upward by +0.3 to +5.2% (q/q annualized), stronger than expectations of +5.0%.  Also, Eurozone Nov economic confidence rose +0.3 to a 4-month high of 93.8, stronger than expectations of 93.6.

A rift among OPEC+ members regarding crude production levels has delayed the group’s monthly meeting until Thursday and is weighing on crude prices.  Saudi Arabia, which has unilaterally cut back its crude output by 1.0 million bpd since July, is now asking other OPEC+ members to reduce their oil production levels, which has prompted pushback from some African oil producers, including Angola and Nigeria.  OPEC+ delegates said they were progressing toward a compromise but have yet to clinch an agreement.  The rift among OPEC+ members about production levels reduces the likelihood that the group will extend their crude output cuts or make deeper cuts.

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 -2.9% w/w to 86.52 million bbl as of Nov 24.

Increased crude consumption in India, the world’s third largest crude consumer, is bullish for oil prices after India’s oil product consumption in October rose +3.7% y/y to 19.3 MMT, the highest five months.

An increase in Russian crude exports is bearish for oil prices.  Tanker-tracking data monitored by Bloomberg shows 3.24 million bpd of crude was shipped from Russian ports in the week to Nov 26, up +370,000 bpd from the prior week and near the highest in four months.

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 Oct crude production was little changed, rising +50,000 bpd to 28.08 million bpd.

Wednesday’s weekly EIA report was bearish for crude and products.  EIA crude inventories unexpectedly rose +1.61 million bbl versus expectations of a -50,000 bbl draw.  Also, EIA gasoline supplies unexpectedly rose +1.76 million bbl versus expectations of a -700,000 bbl draw.  In addition, EIA distillate stockpiles unexpectedly rose +5.22 million bbl versus expectations of a -1.34 million bbl draw.  Finally, crude supplies at Cushing, the delivery point of WTI futures, rose +1.85 million bbl.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Nov 24 were +0.2% above the seasonal 5-year average, (2) gasoline inventories were -1.4% below the seasonal 5-year average, and (3) distillate inventories were -10.0% below the 5-year seasonal average.  U.S. crude oil production in the week ended Nov 24 was unchanged w/w at a record high of 13.2 million bpd.

Baker Hughes reported last Wednesday that active U.S. oil rigs in the week ended Nov 24 were unchanged at 500 rigs, modestly above the 1-3/4 year low of 494 rigs from Nov 10.  The number of U.S. oil rigs has fallen this year after moving sharply higher during 2021-22 from the 18-year pandemic low of 172 rigs posted in Aug 2020 to a 3-1/2 year high of 627 rigs in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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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~Be Safe

NMEX Crude      $ 76.41 UP $1.5500

NYMEX ULSD     $2.9070 UP $0.0691

NYMEX Gas       $2.2300 UP $0.0501

NEWS

NEW YORK, Nov 28 (Reuters) – Oil prices jumped on Tuesday, settling up about 2% on the possibility OPEC+ will extend or deepen supply cuts, a storm-related drop in Kazakh oil output and a weaker U.S. dollar. Brent crude futures settled up $1.70, or 2.1%, at $81.68 a barrel. U.S. West Texas Intermediate (WTI) crude gained $1.55, or 2.1%, to settle at $76.41.

OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, is due to hold an online ministerial meeting on Thursday to discuss 2024 production targets. The talks will be difficult and a rollover of the previous agreement is possible rather than deeper production cuts, four OPEC+ sources said. The market tumbled last week when OPEC+ pushed back the original date for its meeting to iron out differences on production targets for African producers. “We believe the market’s primary focus surrounds the continuation of Saudi Arabia’s additional voluntary cuts of 1 million barrels per day,” Walt Chancellor, an energy strategist at Macquarie, said in a note. “We believe an extension of these cuts into Q2/Q3 2024 may represent the threshold for this meeting being viewed bullishly.”

One possible compromise could involve Angola and Nigeria accepting reduced production targets for a few months if targets for the other countries were likewise lowered, said Commerzbank’s Carsten Fritsch. “According to delegates, Saudi Arabia is demanding lower production quotas from the other OPEC+ countries. While Kuwait has signaled that it would be willing to do so, some countries are apparently resisting any such move.” The United Arab Emirates is likely to oppose this, given that its 2024 production target was increased at its urging when OPEC+ held its previous meeting in early June, he added.

Oil also found support from a weak dollar, an expected decline in U.S. crude inventories and the drop in Kazakh output.

Kazakhstan’s largest oilfields have cut their combined daily oil output by 56%.

Four analysts polled by Reuters estimated that the latest round of weekly U.S. supply reports will show crude inventories fell by about 900,000 barrels.

The first of this week’s two reports is due at 2130 GMT from the American Petroleum Institute.

The U.S. dollar sank to a three-month low on Tuesday after U.S. Federal Reserve Governor Christopher Waller flagged the possibility of lowering the Fed policy rate in the months ahead if inflation declines further. A weaker dollar typically bolsters oil demand, making dollar-denominated oil less expensive for buyers using other currencies.

In the Middle East, Israeli forces and Hamas fighters held their fire beyond the original deadline of a truce, extended at the last minute by at least two days to let more hostages go free.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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~Be Safe

NMEX Crude      $ 74.86 DN $.6800

NYMEX ULSD     $2.8379 UP $.0022

NYMEX Gas       $2.1799 UP $.0148

NEWS

January WTI crude oil on Monday closed down -0.68 (-0.90%), and Jan RBOB gasoline closed up +0.0088 (+0.41%). Crude oil and gasoline prices on Monday settled mixed.  Crude prices are under pressure from a dispute among Saudi Arabia and other OPEC+ members on crude production levels.  Also, weaker-than-expected U.S. economic news suggests weaker growth that is negative for energy demand and crude prices.  A weaker dollar on Monday was supportive of energy prices.

A rift among OPEC+ members regarding crude production levels has delayed the group’s monthly meeting until this Thursday and is weighing on crude prices.  Saudi Arabia, which has unilaterally cut back its crude output by 1.0 million bpd since July, is now asking other OPEC+ members to reduce their oil production levels, which has prompted pushback from some African oil producers, including Angola and Nigeria.  OPEC+ delegates said they were progressing toward a compromise but have yet to clinch an agreement.  The rift among OPEC+ members about production levels reduces the likelihood that the group will extend their crude output cuts or make deeper cuts.

Monday’s U.S. economic news was weaker than expected and bearish for energy demand and crude prices.  U.S. Oct new home sales fell -5.6% m/m to 679,000, weaker than expectations of 721,000.  Also, the Nov Dallas Fed manufacturing outlook of general business activity unexpectedly fell -0.7 to a 4-month low of -19.9, weaker than expectations of an increase to -16.0. 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 -2.9% w/w to 86.52 million bbl as of Nov 24.

Increased crude consumption in India, the world’s third largest crude consumer, is bullish for oil prices after India’s oil product consumption in October rose +3.7% y/y to 19.3 MMT, the highest five months. An increase in Russian crude exports is bearish for oil prices.  Tanker-tracking data monitored by Bloomberg shows 3.2 million bpd of crude was shipped from Russian ports in the four weeks to Nov 12, near the highest in four months. 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 Oct crude production was little changed, rising +50,000 bpd to 28.08 million bpd.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of Nov 17 were -0.5% below the seasonal 5-year average, (2) gasoline inventories were -1.4% below the seasonal 5-year average, and (3) distillate inventories were -13.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Nov 17 was unchanged w/w at a record high of 13.2 million bpd.

Baker Hughes reported last Wednesday that active U.S. oil rigs in the week ended Nov 24 were unchanged at 500 rigs, modestly above the 1-3/4 year low of 494 rigs from Nov 10.  The number of U.S. oil rigs has fallen this year after moving sharply higher during 2021-22 from the 18-year pandemic low of 172 rigs posted in Aug 2020 to a 3-1/2 year high of 627 rigs in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

DEC 01 Out Late Afternoon

DEC 21 Out Late Afternoon

DEC 22 Out All Day

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