Fueling Strategy: Please fuel as needed today/tonight ~Be Safe

NMEX Crude      $ 71.99 UP $.4400

NYMEX ULSD     $2.3664 UP $.0042

NYMEX Gas       $2.6489 UP $.0728

NEWS

Crude oil and gasoline prices Monday settled moderately higher, with gasoline climbing to a 3-1/2 week high.  The outlook for stronger U.S. fuel demand this Memorial holiday weekend pushed crude prices higher on Monday.  Also, Goldman Sachs projects that the global oil market is shifting to a deficit as supplies begin to tighten.  However, concerns about the ongoing U.S. debt-ceiling talks are undercutting crude oil prices.

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 86 Sunday, with 26 still considered out of control.

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

Fueling Strategy: Please,before 23:00 CST, have completely full of fuel, Friday prices will jump UP 6 cents~Be Safe

NMEX Crude      $ 71.86 DN $.9700

NYMEX ULSD     $2.4026 DN $.0200

NYMEX Gas       $2.5683 DN $.0009

NEWS

June WTI crude oil on Thursday closed down -0.97 (-1.33%), and June RBOB gasoline closed down -0.09 (-0.04%).

Crude oil and gasoline prices Thursday posted moderate losses.  A rally in the dollar index  Thursday to a 1-3/4 month high was bearish for energy prices.  Crude prices were also under pressure Thursday on hawkish comments from the Fed and ECB, which raises concerns central banks will keep raising interest rates that could further slow economic growth and energy demand.  A rally in the S&P 500 Thursday to a 2-1/2 week high is positive for energy prices as it shows confidence in the economic outlook that is supportive of energy demand.

Hawkish central bank comments Thursday suggest policymakers support tighter monetary policy, which would be harmful to economic growth and energy demand.   Dallas Fed President Logan said inflation is too high, and the case for the Fed pausing interest rate increases at the June FOMC meeting isn’t yet clear.  Also, ECB Vice President Guindos said inflation in services is most worrying for the ECB, and it is too soon to say where the ECB will pause its interest rate hikes.

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 rose to 92 Thursday afternoon from 91 on Wednesday, with 26 still considered out of control.

Crude prices also have support on crude buying by the government to refill the Strategic Petroleum Reserve (SPR).  The Energy Department announced Monday that it is soliciting bids for up to 3 million bbl of sour crude to refill the SPR with deliveries in August and that it plans to purchase more oil later this year.

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 +9% w/w to 86.69 million bbl in the week ended May 12.

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 jumped above 4 million bpd in the week of April 28.  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 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 12 fell by -2 to an 11-month low of 586 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 partial fill only today due to prices are UP over 7 cents but will drop 1.5 cents Thursday~Be Safe

NMEX Crude      $ 72.83 UP $1.9700

NYMEX ULSD     $2.4226 UP $0.0587

NYMEX Gas       $2.5692 UP $0.0901

NEWS

June WTI crude oil on Wednesday closed up +1.97 (+2.78%), and June RBOB gasoline closed up +9.01 (+3.63%).   June Nymex natural gas (NGM23) is down -0.024 (-1.01%).

Crude oil and gasoline prices Wednesday rallied sharply, with gasoline climbing to a 2-week high.  Wednesday’s main bullish factor is the broad rally in risk markets on hopes that U.S. lawmakers will soon agree to raise the debt ceiling.  Crude prices moved higher Wednesday despite a rally in the dollar index to a 7-week high and an unexpected increase in weekly EIA crude inventories.

Stronger-than-expected global economic news Wednesday was positive for energy demand and crude prices.  U.S. Apr housing starts unexpectedly rose +2.2% to 1.401 million, stronger than expectations of a decline to 1.400 million.  Also, Eurozone Apr new car registrations rose +17.2% y/y to 803,000, the ninth consecutive month that registrations have increased.  In addition, Japan’s Q1 GDP rose +1.6% (q/q annualized), stronger than expectations of +0.8%.

Crude prices also have support on crude buying by the government to refill the Strategic Petroleum Reserve (SPR).  The Energy Department announced Monday that it is soliciting bids for up to 3 million bbl of sour crude to refill the SPR with deliveries in August and that it plans to purchase more oil later this year.

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 rose to 92 on Wednesday from 86 on Tuesday, with 27 still considered out of control.

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 +9% w/w to 86.69 million bbl in the week ended May 12.

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 jumped above 4 million bpd in the week of April 28.  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 bearish for crude.  EIA crude inventories unexpectedly rose +5.04 million bbl versus expectations of a -2.0 million bbl draw.  Also, EIA distillate stockpiles unexpectedly rose +80,000 bbl versus expectations of a -1.5 million bbl draw.  In addition, crude supplies at Cushing, the delivery point of WTI futures, rose +1.46 million bbl.  Finally, EIA gasoline inventories fell -1.38 million bbl, a smaller decline than expectations of -2.0 million bbl.

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.

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 keep your tanks full of fuel today, tonight before 23:00 CST have completely full of fuel, Wednesday prices will jump UP 7 cents~Be Safe

NMEX Crude      $ 70.86 DN $.2500

NYMEX ULSD     $2.3639 DN $.0141

NYMEX Gas       $2.4791 UP $.0071

NEWS

The ongoing pressure in oil prices neglects an accelerating demand outlook and looming supply tightness, the Paris-based International Energy Agency warned on Tuesday.

Financial turbulence in the banking sector after the spring collapse of several U.S. and European banks steered investors away from historically riskier assets, such as oil. Prices fleetingly gained ground after a number of OPEC+ members announced an additional 1.6 million barrels per day of voluntary cuts at the start of April — only to rapidly surrender these gains, cooling analyst expectations of prices at $100 per barrel. ICE Brent futures with July expiry were trading at $75.14 per barrel at 12 p.m. London time, down 9 cents per barrel from Monday’s close.

Persisting concerns over “muted industrial activity and higher interest rates … combined have led to recessionary scenarios gaining traction and worries of a downward shift in the oil demand growth,” the IEA said in its latest monthly Oil Market Report. The agency highlighted that the recent price declines reflect a growing rift between investor sentiment and a tightening supply-demand picture. “The current market pessimism, however, stands in stark contrast to the tighter market balances we anticipate in the second half of the year, when demand is expected to eclipse supply by almost 2 mb/d,” the agency said, revising its global oil demand forecast by 200,000 barrels per day from its previous projection, to reach 102 million barrels per day in 2023.

The IEA expects demand to start exceeding supply as of this quarter, for the first time since early 2022, with this projected deficit set to deepen to nearly 2 million barrels per day by the end of the year. The world’s largest crude oil importer, China, will account for nearly 60% of global demand growth in 2023, the IEA anticipates, after Bejing’s consumption set its all-time record of 16 million barrels per day in March.

“Record demand in China, India and the Middle East at the start of the year more than offset lacklustre industrial activity and oil use in the OECD,” the IEA said. Chinese crude oil purchases were curtailed by spartan zero-Covid-19 restrictions that were in place for the majority of last year, with analysts widely expecting Beijing’s economic reopening to kickstart a surge in oil prices.

The OPEC+ group has in the past proven wearier to trust a resurgence of Chinese demand, with one delegate, who could only speak under condition of anonymity, previously underlining the pace of Bejing’s rebound has been at times overstated.

In its own Monthly Oil Market Report of May 11, OPEC acknowledges that “looking ahead, oil demand for most products in China has been increasing,” assessing Chinese domestic mobility and air travel have now recovered close to 80% of pre-pandemic levels, with oil demand set to experience 1 million barrels per day of year-on-year growth in the second quarter. The IEA and White House have criticized the OPEC+ alliance’s early-April voluntary cuts decision, stressing the strain on consumers. OPEC+ and the Paris-based agency have progressively diverged in their analysis of the global energy picture, from their outlook on oil prices and supply requirements, to their longer-term view on hydrocarbon investment.

The IEA in 2021 warned against brokering new fossil fuel projects thereon, if the world is to achieve its net-zero targets. OPEC+ officials have meanwhile advocated for simultaneous investment in hydrocarbons and renewables, to avoid energy shortages throughout the green transition. The OPEC group and its non-OPEC partners — critically, including sanctions-struck Russia — will adjourn in Vienna to review their crude oil production policy at the start of next month. OPEC’s second-largest producer, Iraq has so far dismissed the possibility of further reductions.

“At the next meeting, which will be held on the 3rd and 4th (of June), there will be no additional reduction, and as for Iraq, we cannot reduce further,” Iraqi Oil Minister Hayan Abdel-Ghani said last week, in comments reported by Reuters.

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

See below marketing material and promotions for our sites. These promos will run from May 24^th– June 27^th. Please communicate these to your network and let me know if you need anything further!

Thank you for your partnership!

The 7FLEET Diesel Network is a nationwide network of truck diesel lanes established by 7-Eleven, Inc.  These truck-friendly locations are built with professional drivers in mind with payment acceptance, food offerings and other amenities which better serve the trucking industry.  The 7FLEET Diesel Network currently includes over 260+ Speedway locations in 24 states with future expansion to the 7-Eleven family of brands in the coming months which will bring the total site count over 450+.

Fueling Strategy: Please fuel as needed today/tonight ~Be Safe

NMEX Crude      $  71.11 UP $1.0700

NYMEX ULSD     $2.3780 UP $0.0725

NYMEX Gas       $2.4720 UP $0.0418

NEWS

June WTI crude oil on Monday closed up +1.07 (+1.53%), and June RBOB gasoline closed up +4.18 (+1.72%).  Crude oil and gasoline prices Monday shook off early losses and closed moderately higher.  A weaker dollar Monday gave energy prices a boost along with expectations for U.S. fuel demand to increase this Memorial Day holiday.  However, gains in crude were limited as the ongoing U.S. debt-ceiling negotiations inject a risk-off sentiment in asset markets.

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 third-busiest Memorial Day on record.

Crude has support on reduced Canadian crude output after wildfires in Alberta halted about 145,000 bpd of crude production from several Canadian crude producers.  Extreme heat in western Canada sparked additional wildfires over the weekend, with 90 active wildfires in Alberta as of Monday morning, with 23 still considered out of control.

A bullish factor for crude was U.S. Energy Secretary Granholm’s comment last Thursday that the U.S. aims to start buying crude to refill the SPR after the conclusion of a 26 million bbl sale of SPR crude is scheduled to finish in late June.

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 +9% w/w to 86.69 million bbl in the week ended May 12.

Signs of stronger Chinese fuel demand are supportive for crude prices after China’s Ministry of Culture and Tourism reported on May 4 that the number of domestic trips made over the five-day Golden Week holidays reached 274 million, up +19% from the pre-pandemic level in 2019 and almost +71% higher than last year.

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 jumped above 4 million bpd in the week of April 28.  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 5 were -1.2% below the seasonal 5-year average, (2) gasoline inventories were -6.8% below the seasonal 5-year average, and (3) distillate inventories were -16.1% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 5 was unchanged 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 12 fell by -2 to an 11-month low of 586 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 partial fill only tonight or wait to fuel, Saturday prices will go down 4.5 cents BUT please partial fill or wait until Sunday if possible due to prices will continue downward another 4.5 cents~Be Safe

NMEX Crude      $ 70.04 DN $.8300

NYMEX ULSD     $2.3055 DN $.0440

NYMEX Gas       $2.4254 DN $.0323

NEWS

June WTI crude oil on Friday closed down -0.83 (-1.17%), and June RBOB gasoline closed down -3.228 (-1.38%).

Crude oil and gasoline prices Friday gave up an early advance and closed moderately lower.  Friday’s rally in the dollar index to a 1-month high weighed on crude prices, as did a decline in U.S. consumer sentiment to a 6-month low.

Crude prices Friday initially moved higher on concerns about tight global supplies as Iraqi crude exports of around 500,000 bpd remain halted from the Turkish port of Ceyhan.  Also, the U.S. Energy Department said it would soon start buying oil to refill the Strategic Petroleum Reserve (SPR).

A bearish factor for crude is the deterioration of U.S. consumer sentiment after Friday’s University of Michigan U.S. May consumer sentiment index fell -5.8 to a 6-month low of 57.7, weaker than expectations of 63.0.

A bullish factor for crude was U.S. Energy Secretary Granholm’s comment late Thursday that the U.S. aims to start buying crude to refill the SPR after the conclusion of a 26 million bbl sale of SPR crude is scheduled to finish in late June.

Strength in fuel demand in India, the world’s third-largest crude consumer, is bullish for prices after India’s Apr diesel consumption jumped +8.6% y/y to a record 7.82 MMT.

Crude has support on reduced Canadian crude output after wildfires in Alberta halted about 145,000 bpd of crude production from several Canadian crude producers.  However, firefighters are progressing in battling the fires, and crude output should soon resume.  The number of wildfires has fallen to 73, down from more than 80 on Thursday and more than 100 earlier in the week.

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 -16% w/w to 78.03 million bbl in the week ended May 5 to the lowest in 3 months.

Signs of stronger Chinese fuel demand are supportive for crude prices after China’s Ministry of Culture and Tourism reported last Thursday that the number of domestic trips made over the five-day Golden Week holidays reached 274 million, up +19% from the pre-pandemic level in 2019 and almost +71% higher than last year.

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 jumped above 4 million bpd in the week of April 28.  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 EIA report showed that (1) U.S. crude oil inventories as of May 5 were -1.2% below the seasonal 5-year average, (2) gasoline inventories were -6.8% below the seasonal 5-year average, and (3) distillate inventories were -16.1% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 5 was unchanged 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 Friday that active U.S. oil rigs in the week ended May 12 fell by -2 to an 11-month low of 586 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, and tonight before 23:00 CST have tanks completely full of fuel, Friday prices will go up 1/2 cents~Be Safe

NMEX Crude      $ 70.87 DN $1.6900

NYMEX ULSD     $2.3495 DN $0.0439

NYMEX Gas       $2.4577 DN $0.0372

NEWS

June WTI crude oil on Thursday closed down -1.69 (-2.33%), and June RBOB gasoline closed down -3.72 (-1.49%).

Crude oil and gasoline prices on Thursday posted moderate losses.  Thursday’s rally in the dollar index to a 1-week high undercut energy prices.

Also, demand concerns weighed on crude prices as Thursday’s weaker-than-expected economic news from China and the U.S., the world’s two biggest crude consumers, sparked fears about a slowdown in the global economy that is bearish for energy demand.  U.S. weekly initial unemployment claims rose +22,000 to a 1-1/2 year high of  264,000, showing a weaker labor market than expectations of 245,000.  Also, China’s Apr aggregate financing, the broadest measure of credit growth, rose +1.22 trillion yuan, weaker than expectations of +2.0 trillion yuan and the smallest increase in 6 months.

Strength in fuel demand in India, the world’s third-largest crude consumer, is bullish for prices after India’s Apr diesel consumption jumped +8.6% y/y to a record 7.82 MMT.

Crude has support on reduced Canadian crude output after wildfires in Alberta halted about 145,000 bpd of crude production from several Canadian crude producers.  However, firefighters are progressing in battling the fires, and crude output should soon resume.

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 -16% w/w to 78.03 million bbl in the week ended May 5 to the lowest in 3 months.

Signs of stronger Chinese fuel demand are supportive for crude prices after China’s Ministry of Culture and Tourism reported last Thursday that the number of domestic trips made over the five-day Golden Week holidays reached 274 million, up +19% from the pre-pandemic level in 2019 and almost +71% higher than last year.

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 400,000 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 jumped above 4 million bpd in the week of April 28.  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 EIA report showed that (1) U.S. crude oil inventories as of May 5 were -1.2% below the seasonal 5-year average, (2) gasoline inventories were -6.8% below the seasonal 5-year average, and (3) distillate inventories were -16.1% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 5 was unchanged 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 5 fell -3 to 588 rigs, moderately 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, and tonight before 23:00 CST have tanks completely full of fuel, Thursday prices will go up 1.25 cents~Be Safe

NMEX Crude      $ 72.56 DN $1.1500

NYMEX ULSD     $2.3934 UP $0.0032

NYMEX Gas       $2.4949 UP $0.0150

NEWS

June WTI crude oil on Wednesday closed down -1.15 (-1.56%), and June RBOB gasoline closed up +1.50 (+0.60%).

Crude oil and gasoline prices Wednesday settled mixed, with gasoline climbing to a 1-week high.  A weaker dollar Wednesday was supportive of energy prices.  Also, signs of strength in fuel demand in India supported crude prices.  However, crude prices moved lower after Wednesday’s weekly EIA inventory report showed that U.S. crude inventories unexpectedly rose last week.

Strength in fuel demand in India, the world’s third-largest crude consumer, is bullish for prices after India’s Apr diesel consumption jumped +8.6% y/y to a record 7.82 MMT.

Crude has support on a reduction of Canadian crude output after wildfires in Alberta halted about 145,000 bpd of crude production from several Canadian crude producers.  However, firefighters are progressing in battling the fires, and crude output should soon resume.

Strength in the crude crack spread is bullish for oil prices as the crack spread Wednesday rose to a 2-1/2 week high, encouraging refiners to boost their crude purchases and refine the crude into gasoline and distillates.

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 -16% w/w to 78.03 million bbl in the week ended May 5 to the lowest in 3 months.

Signs of stronger Chinese fuel demand are supportive for crude prices after China’s Ministry of Culture and Tourism reported last Thursday that the number of domestic trips made over the five-day Golden Week holidays reached 274 million, up +19% from the pre-pandemic level in 2019 and almost +71% higher than last year.

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 400,000 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 jumped above 4 million bpd in the week of April 28.  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 report was mixed for crude and products.  On the bearish side, EIA crude inventories unexpectedly rose +2.95 million bbl versus expectations of a -2.5 million bbl draw.  Also, crude supplies at Cushing, the delivery point of WTI futures, rose +397,000 bbl.  On the bullish side, EIA gasoline stockpiles fell -3.2 million bbl to a 5-month low, a bigger decline than expectations of -1.5 million bbl.  Also, EIA distillate inventories fell -4.2 million bbl to a 7-month low, a larger draw than expectations of -1.0 million bbl.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of May 5 were -1.2% below the seasonal 5-year average, (2) gasoline inventories were -6.8% below the seasonal 5-year average, and (3) distillate inventories were -16.1% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 5 was unchanged 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 5 fell -3 to 588 rigs, moderately 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