Fueling Strategy: Please keep your tanks topped today and tonight before 23:00 CST completely fill your tanks, Wednesday prices will jump UP 2.5 cents~Be Safe

NMEX Crude      $ 71.74 DN $.4100

NYMEX ULSD     $2.3678 DN $.0097

NYMEX Gas       $2.5643 UP $.0399

NEWS

June 6 (Reuters) – U.S. diesel demand will drop through 2024 despite growing economic activity, extending a recent break from tradition where demand for the freight fuel grows with GDP, the Energy Information Administration forecast on Tuesday.

Historically, GDP has grown in tandem with manufacturing activity and diesel consumption as more goods orders increase the need for freight transport, the main driver of diesel demand.

After a brief spurt in consumer spending on goods during peak pandemic-related restrictions, however, service sector production has been the primary driver of GDP growth, which requires less diesel consumption, the EIA said.

Diesel consumption declined in the first quarter compared with the same time last year, a period of economic growth, the statistical arm of the U.S. Department of Energy noted.

The EIA added that the trend is expected to continue, with diesel demand for the second half of this year seen below the 2015-2019 average and then falling further in 2024.

Between the first quarters of 2021 and 2023, spending on services rose 10% while spending on goods rose just 2% over that period, the EIA said.

The Institute for Supply Management said its manufacturing Purchasing Managers’ Index (PMI) fell to 46.9 last month from 47.1 in April. It was the seventh straight month that the PMI stayed below the 50 threshold, which indicates contraction in manufacturing, and it is the longest such stretch since the Great Recession.

While the services sector has also slowed, the non-manufacturing PMI was still in expansion and landed at 50.2 for last month.

“Going forward, we expect this trend (of more spending on services) to continue and GDP to increase by 1.3% in 2023, while the distillate-weighted manufacturing index declines by 1.1%,” EIA said.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 14 AT 2:00 PM

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEP   01 OUT ALL DAY

NOV 01-02-03 VACATION

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      $ 72.15 UP $.4100

NYMEX ULSD     $2.3775 UP $.0206

NYMEX Gas       $2.5244 UP $.0237

NEWS

July WTI crude oil on Monday closed up +0.41 (+0.57%), and July RBOB gasoline closed up +2.37 (+0.95%).

Crude oil and gasoline prices Monday posted moderate gains, with crude climbing to a 1-month high.   Crude prices rallied Monday after Saudi Arabia said it would cut its crude production by -1.0 million bpd starting in July.  However, weaker-than-expected global economic news raised concerns about energy demand, and crude prices fell back from their best levels.

Crude prices jumped Monday after OPEC+ agreed to maintain its crude production levels on Sunday.  However, Saudi Arabia said it will voluntarily cut its crude output by 1 million bpd starting in July, and Saudi Energy Minister Price Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to the oil market.”   He also said that next month’s additional cuts could be extended, but they will keep the market “in suspense” about whether this will happen.

Crude prices also garnered support Monday after Saudi Arabia’s state-owned Aramco said it would raise oil prices in July for all customers of Arab light crude.

Weaker-than-expected global economic news Monday was bearish for energy demand and crude prices.  U.S. Apr factory orders rose +0.4% m/m, weaker than expectations of +0.8% m/m.  Also, the U.S. May ISM services index unexpectedly fell -1.6 to a 5-month low of 50.3, weaker than expectations of an increase to 52.4.  In addition, the Eurozone May S&P composite PMI was revised downward to 52.8 from the initially reported 53.3.  Finally, the Eurozone Jun Sentix investor confidence fell -3.9 to a 5-month low of -17.0, weaker than expectations of -15.1.

OPEC May crude production fell -500,00 bpd to a 16-month low of 28.26 million bpd.

On the negative side, India’s Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  India is the world’s third-largest crude-consuming country in the world.

In a bearish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week rose +1.8% w/w to 101.46 million bbl in the week ended June 2.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to May 21 were more than 480,000 bpd higher than during the four weeks to February 26 to nearly 4 million bpd.  Crude shipments from Russian ports are +1.2 million bpd higher than at the end of 2022, with most of the crude going to India and China.  Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.

Last Thursday’s EIA report showed that (1) U.S. crude oil inventories as of May 26 were -2.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -16.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 26 fell -0.8% w/w to 12.1 million bpd, only 0.9 million bpd (-6.9%) 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 June 2 fell by -15 to a 13-month low of 555 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

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 and tonight before 23:00 CST completely fill your tanks, Saturday prices will jump UP 6 cents then Sunday look for prices to continue UP 4 more cents ~Be Safe

NMEX Crude      $ 71.74 UP $1.6400

NYMEX ULSD     $2.3569 UP $0.0422

NYMEX Gas       $2.5007 UP $0.0645

NEWS

July WTI crude oil on Friday closed up +1.64 (+2.34%), and July RBOB gasoline  closed up +6.45 (+2.65%).

Crude oil and gasoline prices Friday closed moderately higher.   Crude prices rose Friday in hopes of stronger Chinese energy demand after Bloomberg reported the Chinese government is working on a new basket of measures to support the property market.  Also, the larger-than-expected increase in Friday’s U.S. May nonfarm payroll report shows strength in the labor market that is supportive of economic growth and energy demand.  Finally, fund short covering lifted crude prices ahead of this weekend’s OPEC+ meeting.

OPEC+ is meeting Saturday and Sunday to discuss crude production levels.   Goldman Sachs predicts the group will maintain crude output at current levels as “they want to observe the impact of fresh cuts in production, which just started this month.”

Russian Deputy Prime Minister Novak last Thursday said he doesn’t see any new steps from OPEC+, and the group will likely maintain current crude production levels when it meets this weekend.  Crude prices surged on April 3 after OPEC+ announced a surprise oil production cut of more than 1 million bpd starting May 1.  Saudi Arabia said the cuts were a “precautionary measure aimed at supporting the stability of the oil market.”  OPEC May crude production fell -500,00 bpd to a 16-month low of 28.26 million bpd.

Stronger-than-expected global economic news Friday was bullish for energy demand and crude prices.  U.S. May nonfarm payrolls rose +339,000, stronger than expectations of +195,000 and the largest increase in 4 months.  Also,  French Apr manufacturing production rose +0.7% m/m, stronger than expectations of +0.1% m/m.

On the negative side, India’s Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  India is the world’s third-largest crude-consuming country in the world.

In a bullish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week fell -0.5% w/w to 93.59 million bbl in the week ended May 26.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to May 21 were more than 480,000 bpd higher than during the four weeks to February 26 to nearly 4 million bpd.  Crude shipments from Russian ports are +1.2 million bpd higher than at the end of 2022, with most of the crude going to India and China.  Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.

Thursday’s EIA report showed that (1) U.S. crude oil inventories as of May 26 were -2.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -16.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 26 fell -0.8% w/w to 12.1 million bpd, only 0.9 million bpd (-6.9%) 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 June 2 fell by -15 to a 13-month low of 555 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 01 AT 10:00 AM

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, prices are down 9 cents but will go down another 2 cents Friday then jump UP 6 cents Saturday~Be Safe

NMEX Crude      $ 70.10 UP $2.0100

NYMEX ULSD     $2.3147 UP $0.0638

NYMEX Gas       $2.4362 DN $0.0076

NEWS

July WTI crude oil on Thursday closed up +2.01 (+2.95%), and July RBOB gasoline closed down -0.76 (-0.31%).

Crude oil and gasoline prices Thursday settled mixed.   A decline in the dollar index Thursday to a 1-week low was bullish for energy prices.   Also, the House passage of the debt ceiling deal sparked a rally in stocks and other risk assets such as crude.  A negative factor for energy prices was the bearish weekly EIA inventory report.

Stronger-than-expected global economic news Thursday temporarily eased energy demand concerns and was bullish for crude prices.  The China May Caixin manufacturing PMI unexpectedly rose +1.4 to 50.9, stronger than expectations of no change at 49.5.  Also, the U.S. May ADP employment change rose +278,000, stronger than expectations of +170,000.  In addition, Japan’s Q1 capital spending ex-software rose +10.0% y/y, stronger than expectations of +3.7% y/y and the biggest increase in 4-3/4 years.

Strength in U.S. gasoline demand is supportive for crude prices after the EIA reported that implied U.S. gasoline demand on a four-week average rose by +1.3% to 9.2 million bpd the week ended May 26, the highest in 1-1/2 years.

Reduced OPEC crude production is bullish for prices.  OPEC May crude production fell -500,00 bpd to 28.26 million bpd, a 16-month low.

Weakness in the crude crack spread is bearish for crude prices.  The crack spread Thursday fell to a 2-1/2 week low, discouraging refiners from purchasing crude oil to refine into gasoline and distillates.

A bearish factor for crude was Russian Deputy Prime Minister Novak’s comment last Thursday that he doesn’t see any new steps from OPEC+ and the group will likely maintain current crude production levels when it meets later this week.  Crude prices surged on April 3 after OPEC+ announced a surprise oil production cut of more than 1 million bpd starting May 1.  Saudi Arabia said the cuts were a “precautionary measure aimed at supporting the stability of the oil market.”

On the negative side, India’s Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  India is the world’s third-largest crude-consuming country in the world.

In a bullish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week fell -0.5% w/w to 93.59 million bbl in the week ended May 26.

The ongoing halt of Iraqi crude exports from the Turkish port of Ceyhan is tightening global oil supplies and is bullish for crude prices.  The Turkish government said it wants to negotiate a $1.5 billion settlement that it has been ordered to pay before allowing Iraqi crude exports to resume through its pipeline.  Oil exports of 500,000 bpd from the Turkish port of Ceyhan have been halted since March 25 after Iraq won an arbitration case from the International Chamber of Commerce that said Turkey violated a 1973 pipeline transit agreement by allowing crude from the Kurdish region to be exported without Iraqi government consent.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to May 21 were more than 480,000 bpd higher than during the four weeks to February 26 to nearly 4 million bpd.  Crude shipments from Russian ports are +1.2 million bpd higher than at the end of 2022, with most of the crude going to India and China.  Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.

Thursday’s weekly EIA report was mostly bearish for crude oil and products.  EIA crude inventories unexpectedly rose +4.49 million bbl versus expectations of a -1.5 million bbl draw.  Also, EIA gasoline supplies fell -207,000 bbl, a smaller decline than expectations of -1.1 million bbl.  In addition, crude stockpiles at Cushing, the delivery point of WTI futures, rose +1.63 million bbl.

Thursday’s EIA report showed that (1) U.S. crude oil inventories as of May 26 were -2.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -16.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 26 fell -0.8% w/w to 12.1 million bpd, only 0.9 million bpd (-6.9%) 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 May 26 fell by -5 to a 1-year low of 570 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

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, Prices will drop 9 cents Thursday cents then Friday look for another 2 cents drop ~ Be Safe

NMEX Crude      $ 68.09 DN $1.3700

NYMEX ULSD     $2.2596 DN $0.0212

NYMEX Gas       $2.5599 DN $0.0360

NEWS

WTI crude oil closed down -1.39 (-1.14%), and July RBOB gasoline is down -2.14 (-0.86%).   July Nymex natural gas is down -0.015 (-0.64%).

Crude oil and gasoline prices this morning extended Tuesday’s losses, with crude posting a 3-1/2 week low and gasoline dropping to a 2-week low.  A rally in the dollar index today to a 2-1/2 month high is bearish for energy prices.  Also, concern about China’s energy demand is weighing on crude prices after weak Chinese manufacturing and service sector reports.

July nat-gas prices are moderately higher this morning on forecasts for warmer U.S. temperatures, which should boost nat-gas demand from electricity providers to power air-conditioning usage.  The Commodity Weather Group said above-normal temperatures are expected for the Midwest and Mid-Atlantic regions this week, with warmth lingering in the Midwest and West next week.

The lackluster recovery in China from its Covid Zero policy signals weaker-than-expected energy demand and is a bearish factor for crude prices.  Today’s China May manufacturing PMI unexpectedly fell -0.4 to 48.8, weaker than expectations of an increase to 49.5 and the weakest report in 5 months.  Also, the May non-manufacturing PMI fell -1.9 to 54.5, weaker than expectations of 55.2.

A report from GasBuddy signaled weaker-than-expected U.S. gasoline demand over the Memorial Day holiday weekend and was bearish for crude.  GasBudy said U.S. drivers consumed -1.5% less gasoline during this Memorial Day holiday weekend versus a year ago.

Weakness in the crude crack spread is bearish for crude prices.  The crack spread fell to a 1-week low today, discouraging refiners from purchasing crude oil to refine into gasoline and distillates.

A bearish factor for crude was Russian Deputy Prime Minister Novak’s comment last Thursday that he doesn’t see any new steps from OPEC+ and the group will likely maintain current crude production levels when it meets later this week.  Crude prices surged on April 3 after OPEC+ announced a surprise oil production cut of more than 1 million bpd starting May 1.  Saudi Arabia said the cuts were a “precautionary measure aimed at supporting the stability of the oil market.”  OPEC Mar crude production fell by -80,000 bpd to 29.16 million bpd.

On the negative side, India’s Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  India is the world’s third-largest crude-consuming country in the world.

In a bullish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week fell -0.5% w/w to 93.59 million bbl in the week ended May 26.

The ongoing halt of Iraqi crude exports from the Turkish port of Ceyhan is tightening global oil supplies and is bullish for crude prices.  The Turkish government said it wants to negotiate a $1.5 billion settlement that it has been ordered to pay before allowing Iraqi crude exports to resume through its pipeline.  Oil exports of 500,000 bpd from the Turkish port of Ceyhan have been halted since March 25 after Iraq won an arbitration case from the International Chamber of Commerce that said Turkey violated a 1973 pipeline transit agreement by allowing crude from the Kurdish region to be exported without Iraqi government consent.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to May 21 were more than 480,000 bpd higher than during the four weeks to February 26 to nearly 4 million bpd.  Crude shipments from Russian ports are +1.2 million bpd higher than at the end of 2022, with most of the crude going to India and China.  Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of May 19 were -3.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -17.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 19 rose +0.8% w/w to 12.3 million bpd, only 0.8 million bpd (-6.1%) 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 May 26 fell by -5 to a 1-year low of 570 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 01 AT 10:00 AM

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      $ 69.46 DN $3.2100

NYMEX ULSD     $2.2808 DN $0.0885

NYMEX Gas       $2.5959 DN $0.1075

NEWS

July WTI crude oil on Tuesday closed down -3.21 (-4.42%), and July RBOB gasoline closed down -10.75 (-4.33%).

Crude oil and gasoline prices Tuesday sold off sharply, with crude falling to a 2-week low and gasoline dropping to a 1-week low.  Crude oil prices fell on concern about global demand for crude oil.  Crude oil prices are also being undercut by expectations that OPEC+ will maintain current crude production levels when it meets later this week.

Signs of weakness in the physical market are undercutting crude prices after the June-July cash roll of WTI crude, which reflects crude supply balances at Cushing, the delivery point of WTI futures, dropped -29 cents per barrel, indicating lower demand for crude barrels being delivered in June than in July.

The lackluster recovery in China from its Covid Zero policy signals weaker-than-expected energy demand and is a bearish factor for crude prices.

A bearish factor for crude was Russian Deputy Prime Minister Novak’s comment last Thursday that he doesn’t see any new steps from OPEC+ and the group will likely maintain current crude production levels when it meets later this week.

On the negative side, India’s Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  India is the world’s third-largest crude-consuming country in the world.

In a bullish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week fell -0.5% w/w to 93.59 million bbl in the week ended May 26.

The ongoing halt of Iraqi crude exports from the Turkish port of Ceyhan is tightening global oil supplies and is bullish for crude prices.  The Turkish government said it wants to negotiate a $1.5 billion settlement that it has been ordered to pay before allowing Iraqi crude exports to resume through its pipeline.  Oil exports of 500,000 bpd from the Turkish port of Ceyhan have been halted since March 25 after Iraq won an arbitration case from the International Chamber of Commerce that said Turkey violated a 1973 pipeline transit agreement by allowing crude from the Kurdish region to be exported without Iraqi government consent.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to May 21 were more than 480,000 bpd higher than during the four weeks to February 26 to nearly 4 million bpd.  Crude shipments from Russian ports are +1.2 million bpd higher than at the end of 2022, with most of the crude going to India and China.  Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.

Crude prices surged on April 3 after OPEC+ announced a surprise oil production cut of more than 1 million bpd starting May 1.  Saudi Arabia said the cuts were a “precautionary measure aimed at supporting the stability of the oil market.”  OPEC Mar crude production fell by -80,000 bpd to 29.16 million bpd.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of May 19 were -3.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -17.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 19 rose +0.8% w/w to 12.3 million bpd, only 0.8 million bpd (-6.1%) 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 May 26 fell by -5 to a 1-year low of 570 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 01 AT 10:00 AM

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, Friday prices will go UP 5.5 cents BUT will drop almost 7 cents Saturday~ Be Safe

NMEX Crude      $ 71.83 DN $2.5100

NYMEX ULSD     $2.3462 DN $0.0675

NYMEX Gas       $2.6735 DN $0.0477

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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, Thursday prices will go down 1/2 cents but Friday look for a big jump of 5+ cents ~Be Safe

NMEX Crude      $ 74.34 UP $1.4300

NYMEX ULSD     $2.4137 UP $0.0520

NYMEX Gas       $2.7212 UP $0.0590

NEWS

July WTI crude oil on Wednesday closed up +1.43 (+1.96%), and July RBOB gasoline (closed up +5.90 (+2.34%).

Crude oil and gasoline prices posted moderate gains, with crude climbing to a 3-week high and gasoline climbing to a 5-week high.  Crude prices opened higher Wednesday on carryover support from Tuesday when Saudi Arabia’s Energy Minister warned short sellers in the oil market of pain ahead.  Gains in crude accelerated after weekly EIA crude inventories unexpectedly plunged.  A bearish factor for crude was Wednesday’s rally in the dollar index to a 2-month high.

Crude prices have carryover support from Tuesday when Saudi Arabian Energy Minister Prices Abdulaziz bin Salman said short sellers in the crude market “will be ouching like they did back in April,” when OPEC+ unexpectedly cut crude production.

Goldman Sachs on Monday said, “Inventory draws appear to have started” among global visible stocks, signaling a turning point for the global oil market.  Goldman reiterated its view that Brent crude would reach $95 per barrel in December.

The outlook for stronger U.S. fuel demand is bullish for crude prices.  AAA is forecasting that as many as 42.3 million Americans will travel 50 miles or more from home this Memorial Day weekend, up +7% y/y and the highest for a Memorial Day weekend since 2005.

Crude has support on reduced Canadian crude output as wildfires in Alberta have halted at least 240,000 bpd and possibly 300,000 bpd of crude production from several Canadian crude producers.  The total number of wildfires in Alberta stood at 71 Tuesday afternoon, with 20 still considered out of control.   However, that’s down from 93 fires last Friday, with cooler temperatures and rain expected to provide further relief in the days ahead.

On the bearish side, India’s Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  India is the world’s third-largest crude-consuming country in the world.

In a bearish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week rose +1.3% w/w to 91.15 million bbl in the week ended May 19.

The ongoing halt of Iraqi crude exports from the Turkish port of Ceyhan is tightening global oil supplies and is bullish for crude prices.  The Turkish government said it wants to negotiate a $1.5 billion settlement that it has been ordered to pay before allowing Iraqi crude exports to resume through its pipeline.  Oil exports of 500,000 bpd from the Turkish port of Ceyhan have been halted since March 25 after Iraq won an arbitration case from the International Chamber of Commerce that said Turkey violated a 1973 pipeline transit agreement by allowing crude from the Kurdish region to be exported without Iraqi government consent.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports rose for the sixth week ending May 19 to nearly 4 million bpd.  Crude shipments from Russian ports are +1.2 million bpd higher than at the end of 2022, with most of the crude going to India and China.  Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.

Crude prices surged on April 3 after OPEC+ announced a surprise oil production cut of more than 1 million bpd starting May 1.  Saudi Arabia said the cuts were a “precautionary measure aimed at supporting the stability of the oil market.”  OPEC Mar crude production fell by -80,000 bpd to 29.16 million bpd.

Wednesday’s weekly EIA inventory report was mostly bullish for crude prices.  EIA crude inventories unexpectedly plunged -12.46 million bbl versus expectations of a +2.0 million bbl build.  Also, EIA gasoline supplies fell -2.05 million bbl, a bigger draw than expectations of -1.6 million bbl.  In addition, EIA distillate supplies unexpectedly fell -561,000 bbl to a 1-year low versus expectations of a +500,000 bbl build.  On the bearish side, crude stockpiles at Cushing, the delivery point of WTI futures, rose +1.76 million bbl.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of May 19 were -3.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -17.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 19 rose +0.8% w/w to 12.3 million bpd, only 0.8 million bpd (-6.1%) 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 May 19 fell by -11 to an 11-month low of 575 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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, Wednesday prices will go up 1/2 cents then Thursday prices will drop 1/2 cents  ~Be Safe

NMEX Crude      $ 72.91 UP $.8600

NYMEX ULSD     $2.3617 DN $.0047

NYMEX Gas       $2.6622 UP $.0133

NEWS

Crude oil and gasoline prices this morning were moderately higher, with crude posting a 1-1/2 week high and gasoline climbing to a 5-week high.  Crude prices jumped today after Saudi Arabia’s Energy Minister warned short sellers in the oil market of pain ahead.  Also, the outlook for stronger U.S. fuel demand this Memorial holiday weekend is boosting crude prices.  On the bearish side is today’s rally in the dollar index to a 2-month high.

Jun nat-gas is moderately lower today as mild temperatures are seen curbing nat-gas demand for power generation.  Forecaster Atmospheric G2 said normal to slightly cooler-than-normal temperatures will be seen across the southern and eastern states next week, reducing nat-gas demand from electricity providers to power air conditioning with the cooler temperatures.  Also, negative carryover from today’s slump in European nat-gas prices to a 23-month low is bearish for nat-gas.

Crude prices jumped today on short covering after Saudi Arabian Energy Minister Prices Abdulaziz bin Salman said short sellers in the crude market “will be ouching like they did back in April,” when OPEC+ unexpectedly cut crude production.

Goldman Sachs on Monday said, “Inventory draws appear to have started” among global visible stocks, signaling a turning point for the global oil market.  Goldman reiterated its view that Brent crude would reach $95 per barrel in December.

The outlook for stronger U.S. fuel demand is bullish for crude prices.  AAA is forecasting that as many as 42.3 million Americans will travel 50 miles or more from home this Memorial Day weekend, up +7% y/y and the highest for a Memorial Day weekend since 2005.

Crude has support on reduced Canadian crude output as wildfires in Alberta have halted at least 240,000 bpd and possibly 300,000 bpd of crude production from several Canadian crude producers.  The total number of wildfires in Alberta stood at 81 Monday afternoon, with 23 still considered out of control.

Weakness in manufacturing activity in the U.S. and Europe is bearish for energy demand and crude prices.  Today’s news showed the U.S. May S&P manufacturing PMI fell -1.7 to 48.5, weaker than expectations of 50.0.  Also, the Eurozone May S&P manufacturing PMI unexpectedly fell -1.2 to a 3-year low of 44.6, weaker than expectations of an increase to 46.0.

On the bearish side, India’s Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  India is the world’s third-largest crude-consuming country in the world.

In a bearish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week rose +1.3% w/w to 91.15 million bbl in the week ended May 19.

The ongoing halt of Iraqi crude exports from the Turkish port of Ceyhan is tightening global oil supplies and is bullish for crude prices.  The Turkish government said it wants to negotiate a $1.5 billion settlement that it has been ordered to pay before allowing Iraqi crude exports to resume through its pipeline.  Oil exports of 500,000 bpd from the Turkish port of Ceyhan have been halted since March 25 after Iraq won an arbitration case from the International Chamber of Commerce that said Turkey violated a 1973 pipeline transit agreement by allowing crude from the Kurdish region to be exported without Iraqi government consent.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports rose for the sixth week ending May 19 to nearly 4 million bpd.  Crude shipments from Russian ports are +1.2 million bpd higher than at the end of 2022, with most of the crude going to India and China.  Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.

Crude prices surged on April 3 after OPEC+ announced a surprise oil production cut of more than 1 million bpd starting May 1.  Saudi Arabia said the cuts were a “precautionary measure aimed at supporting the stability of the oil market.”  OPEC Mar crude production fell by -80,000 bpd to 29.16 million bpd.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of May 12 were -0.1% below the seasonal 5-year average, (2) gasoline inventories were -6.4% below the seasonal 5-year average, and (3) distillate inventories were -16.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 12 fell -0.8% w/w to 12.2 million bpd, only 0.9 million bpd (-6.9%) 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 May 19 fell by -11 to an 11-month low of 575 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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