Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, Tuesday NO price changes~Be Safe

NMEX Crude      $ 80.72 DN $.5300

NYMEX ULSD     $3.1162 DN $.0435

NYMEX Gas       $2.7726 DN $.0506

NEWS

September WTI crude oil on Monday closed -0.53 (-0.65%), and Sep RBOB gasoline closed down -4.06 (-1.79%).

Crude oil and gasoline prices Monday gave up an early advance and closed moderately lower, with gasoline falling to a 1-1/2 week low.  Economic malaise in China, the world’s second-largest crude consumer, threatens to curb its energy demand and is bearish for prices.  Losses were contained by tightness in global crude supplies.  Also, a weaker dollar Monday was bullish for energy prices.

Monday’s monthly report from the Bundesbank was negative for energy demand prospects in Germany, Europe’s largest economy, and bearish for crude prices.  The Bundesbank said, “The German economy continues to be in a weak phase.  In the third quarter of 2023, economic output is likely to remain virtually unchanged again.”

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

In a bearish factor, China’s July crude imports fell -19% m/m to 10.33 million bpd, the smallest volume in 6 months.  Also, Vortexa said China’s onshore crude inventories have expanded to a record 1.02 billion bbl as of Jul 27.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s Jun crude oil imports fell -1.3% y/y to 19.7 MMT, the lowest in 7 months.

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

Crude has support from concerns that Ukraine could retaliate against Russian ships in the Black Sea if Russia continued to block Ukrainian ports.   Ukrainian drones on Aug 6 attacked a Russian oil tanker in the Black Sea, a route that accounts for 20% of the oil that Russia sells daily on global markets.

Crude prices have carryover support from earlier this month when Saudi Arabia and Russia said they would extend their crude production cuts.  Saudi Arabia said it will extend its 1 million bpd cut in crude production into September and said its crude output may “be extended, or extended and deepened.”  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Meanwhile, Russian Deputy Prime Minister Novak said Russia “will continue to voluntarily reduce its oil supply in September by 300,000 bpd” to balance the market.  Russia cut its crude output by 500,000 bpd in August.

OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.

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

A decline in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -7% w/w to 104.09 million bbl as of Aug 18.

Last Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of Aug 11 were -1.5% below the seasonal 5-year average, (2) gasoline inventories were -6.6% below the seasonal 5-year average, and (3) distillate inventories were -16.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Aug 11 rose +0.8% w/w to 12.7 million bpd, the most in over three years.  U.S. crude oil production is modestly below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Aug 18 fell by -5 to a 17-month low of 520 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs are more than triple the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

 Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

AUG 22  13:00 TO 15:30

AUG 23 ALL AFTERNOON

SEPT 01 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 “FUEL AS NEEDED” today/tonight, Prices are down 6 cents today, Friday prices will drop $.0071~Be Safe 

NMEX Crude      $ 80.39 UP $1.0100

NYMEX ULSD     $3.0938 UP $0.0729

NYMEX Gas       $2.8217 DN $0.0454

NEWS

September WTI crude oil on Thursday closed up +1.01 (+1.27%), and Sep RBOB gasoline  closed down -4.54 (-1.58%).

Crude oil and gasoline prices on Thursday settled mixed.  Crude moved higher on carryover support from Wednesday’s EIA report that showed U.S crude inventories fell to their lowest in 8 months.  Crude also garnered support from Thursday’s better-than-expected U.S. economic news, which shows strength in the economy that supports energy demand.  Crude prices fell back from their best levels Thursday after the dollar index  rallied to a 2-month high.  Also, concerns about China’s economy limited the upside in crude prices.

Thursday’s stronger-than-expected U.S. economic news is a supportive factor for fuel demand and crude prices.  Weekly initial unemployment claims fell -9,000 to 239,000, showing a slightly stronger labor market than expectations of 240,000.  Also, the Aug Philadelphia Fed business outlook survey rose +25.5 to a 16-month high of 12.0, stronger than expectations of -10.4.

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

In a bearish factor, China’s July crude imports fell -19% m/m to 10.33 million bpd, the smallest volume in 6 months.  Also, Vortexa said China’s onshore crude inventories have expanded to a record 1.02 billion bbl as of Jul 27.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s Jun crude oil imports fell -1.3% y/y to 19.7 MMT, the lowest in 7 months.

Crude has support on last Tuesday’s comments from Ukraine President Zelensky, who said his country would retaliate against Russian ships in the Black Sea if Russia continued to block Ukrainian ports.   Ukrainian drones on Aug 6 attacked a Russian oil tanker in the Black Sea, a route that accounts for 20% of the oil that Russia sells daily on global markets.

Crude prices have carryover support from earlier this month when Saudi Arabia and Russia said they would extend their crude production cuts.  Saudi Arabia said it will extend its 1 million bpd cut in crude production into September and said its crude output may “be extended, or extended and deepened.”  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Meanwhile, Russian Deputy Prime Minister Novak said Russia “will continue to voluntarily reduce its oil supply in September by 300,000 bpd” to balance the market.  Russia cut its crude output by 500,000 bpd in August.

OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.

A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in the four weeks to Aug 6 dropped to 3.02 million bpd, about 870,000 bpd below the peak in mid-May.

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 -4.2% w/w to 99.67 million bbl as of Aug 11.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of Aug 11 were -1.5% below the seasonal 5-year average, (2) gasoline inventories were -6.6% below the seasonal 5-year average, and (3) distillate inventories were -16.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Aug 11 rose +0.8% w/w to 12.7 million bpd, the most in over three years.  U.S. crude oil production is modestly below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Aug 11 were unchanged at a 17-month low of 525 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs are more than triple the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

AUG 22  13:00 TO 15:30

AUG 23 ALL AFTERNOON

SEPT 01 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 “PARTIAL FILL ONLY” tonight, Thursday look for prices to DROP another 6 cents  ~Be Safe

NMEX Crude      $ 79.38 DN $1.6100

NYMEX ULSD     $3.0209 DN $0.0071

NYMEX Gas       $2.8671 UP $0.0195

NEWS

September WTI crude oil on Wednesday closed down -1.61 (-1.99%), and Sep RBOB gasoline closed up +1.95 (+0.68%).

Crude oil and gasoline prices Wednesday settled mixed, with crude falling to a 1-1/2 week low.  A stronger dollar Wednesday weighed on energy prices, as did the decline in the S&P 500 to a 5-week low.  Also, crude is under pressure on concerns about China’s economic growth after JPMorgan Chase and Barclays cut their 2023 growth estimates for China.  Crude prices retreated Wednesday despite weekly EIA crude inventories falling more than expected. Concerns that China’s faltering economy will undercut its energy demand are a bearish factor for crude prices.  JPMorgan Chase cut its China 2023 GDP forecast to 4.8% from a 6.4% estimate in May.  Also, Barclays cut its China 2023 GDP forecast to 4.5% from a prior forecast of 4.9%.

Stronger-than-expected manufacturing activity in the U.S. and Europe is a supportive factor for fuel demand and crude prices.  U.S. Jul manufacturing production unexpectedly rose +0.5% m/m, stronger than expectations of no change.  Also, Eurozone Jun industrial production unexpectedly rose +0.5% m/m, stronger than expectations of no change. A negative factor for crude prices is the progress made in Iran-U.S. relations that could lead to higher crude exports from Iran after Iran said last week’s deal with the U.S. on the release of prisoners and frozen Iranian funds could lead to diplomacy in other areas, including its nuclear program.  An agreement on Iran’s nuclear program could prompt the U.S. and its allies to remove sanctions on Iranian crude exports, boosting global crude supplies.

In a bearish factor, China’s July crude imports fell -19% m/m to 10.33 million bpd, the smallest volume in 6 months.  Also, Vortexa said China’s onshore crude inventories have expanded to a record 1.02 billion bbl as of Jul 27.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s Jun crude oil imports fell -1.3% y/y to 19.7 MMT, the lowest in 7 months.

Crude has support on last Tuesday’s comments from Ukraine President Zelensky, who said his country would retaliate against Russian ships in the Black Sea if Russia continued to block Ukrainian ports.   Ukrainian drones on Aug 6 attacked a Russian oil tanker in the Black Sea, a route that accounts for 20% of the oil that Russia sells daily on global markets.

Crude prices have carryover support from earlier this month when Saudi Arabia and Russia said they would extend their crude production cuts.  Saudi Arabia said it will extend its 1 million bpd cut in crude production into September and said its crude output may “be extended, or extended and deepened.”  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Meanwhile, Russian Deputy Prime Minister Novak said Russia “will continue to voluntarily reduce its oil supply in September by 300,000 bpd” to balance the market.  Russia cut its crude output by 500,000 bpd in August.

OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd. A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in the four weeks to Aug 6 dropped to 3.02 million bpd, about 870,000 bpd below the peak in mid-May. 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 -4.2% w/w to 99.67 million bbl as of Aug 11.

Wednesday’s weekly EIA report was mixed for crude.  On the bearish side, EIA gasoline supplies fell -262,000 bbl, a smaller draw than expectations of -1.0 million bbl.  Also, EIA distillate stockpiles unexpectedly rose +296,000 bbl versus expectations of a -500,000 bbl decline.  In addition, U.S. crude production in the week ended Aug 11 rose +0.8% w/w to 12.7 million bpd, the most in over three years.  On the bullish side, EIA crude inventories fell -5.96 million bbl, a larger draw than expectations of -2.5 million bbl.  Also, crude stockpiles at Cushing, the delivery point of WTI futures, fell by -837,000 bbl.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of Aug 11 were -1.5% below the seasonal 5-year average, (2) gasoline inventories were -6.6% below the seasonal 5-year average, and (3) distillate inventories were -16.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Aug 11 rose +0.8% w/w to 12.7 million bpd, the most in over three years.  U.S. crude oil production is modestly below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Aug 11 were unchanged at a 17-month low of 525 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs are more than triple the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE 

AUG 22  13:00 TO 15:30

AUG 23 ALL AFTERNOON

SEPT 01 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

Join America’s #1 loyalty program and earn free stuff! Start earning points on the fuel and merchandise you already buy. Then redeem those points for coupons or gift cards to put towards your favorite items or get discounts on fuel with our Fuel Rewards! Use the link’s below to download app and sign up!

Speedy Rewards – Speedway   Speedway Fuel & Speedy Rewards on the App Store (apple.com)    Speedway Fuel & Speedy Rewards – Apps on Google Play

Special Promotions being ran from August 30^th – October 31^st

• Buy 3 8.4oz Red Bulls for only $5.50
• Large Coffee for only $1.49
• Buy 5 wings for only $5
• 2 Cheeseburgers for only $6

Jacob Thomas

Sr Regional Sales Manager

7FLEET Network

470-350-3590 | [email protected]

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Wednesday prices will DROP 3.5 cents then Thursday look for prices to DROP another 6 cents  ~Be Safe

NMEX Crude      $ 80.99 DN $1.5200

NYMEX ULSD     $3.0280 DN $0.0603

NYMEX Gas       $2.8476 DN $0.0586

NEWS

September WTI crude oil on Tuesday closed down -1.52 (-1.84%), and Sep RBOB gasoline closed down -5.86 (-2.02%).

Crude oil and gasoline prices Tuesday closed moderately lower.  Crude prices were under pressure Tuesday on concerns about global oil demand after China reported weaker-than-expected industrial activity and retail sales last month.   A weaker dollar Tuesday contained losses in crude. Weakness in China’s economy, the second-largest in the world, is negative for crude demand and prices.  Tuesday’s news showed China’s Jul industrial production rose +3.7% y/y, weaker than expectations +4.3% y/y.  Also, China’s Jul retail sales rose +2.5% y/y, weaker than expectations of +4.0% y/y and the slowest pace of increase in 5 months.

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

In a bearish factor, China’s July crude imports fell -19% m/m to 10.33 million bpd, the smallest volume in 6 months.  Also, Vortexa said China’s onshore crude inventories have expanded to a record 1.02 billion bbl as of July 27.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s Jun crude oil imports fell -1.3% y/y to 19.7 MMT, the lowest in 7 months.

Crude has support from last Friday’s monthly report from the IEA that said global crude oil usage averaged a record 103 million bpd in June and may soar even higher this month.  The IEA also said global crude supplies have tightened, leaving oil inventories in developed nations about 115 million bpd below their five-year average.

Crude has support on last Tuesday’s comments from Ukraine President Zelensky, who said his country would retaliate against Russian ships in the Black Sea if Russia continued to block Ukrainian ports.   Ukrainian drones on August 6 attacked a Russian oil tanker in the Black Sea, a route that accounts for 20% of the oil that Russia sells daily on global markets.

Crude prices have carryover support from earlier this month when Saudi Arabia and Russia said they would extend their crude production cuts.  Saudi Arabia said it will extend its 1 million bpd cut in crude production into September and said its crude output may “be extended, or extended and deepened.”  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Meanwhile, Russian Deputy Prime Minister Novak said Russia “will continue to voluntarily reduce its oil supply in September by 300,000 bpd” to balance the market.  Russia cut its crude output by 500,000 bpd in August.

OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd. A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in the four weeks to Aug 6 dropped to 3.02 million bpd, about 870,000 bpd below the peak in mid-May. 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 -4.2% w/w to 99.67 million bbl as of Aug 11.

The consensus is that Wednesday’s weekly EIA crude inventories will fall -2.5 million bbl. Last Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of Aug 4 were -0.4% below the seasonal 5-year average, (2) gasoline inventories were -7.2% below the seasonal 5-year average, and (3) distillate inventories were -16.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Aug 4 jumped +3.3% w/w to 12.6 million bpd, the most in over three years.  U.S. crude oil production is moderately 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 Aug 11 were unchanged at a 17-month low of 525 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs are more than triple the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

AUG 22  13:00 TO 15:30

AUG 23 ALL AFTERNOON

SEPT 01 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

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

NMEX Crude      $ 82.51 DN $.6800

NYMEX ULSD     $3.0883 DN $.0332

NYMEX Gas       $2.9062 DN $.0587

NEWS

September WTI crude oil on Monday closed down -0.74 (-0.89%), and Sep RBOB gasoline closed down -5.87 (-1.98%).

Crude oil and gasoline prices Monday settled moderately lower.  Monday’s rally in the dollar index to a 5-week high pressured energy prices.  Also, concerns that a worsening of China’s property debt crisis will weigh on its economy and energy demand undercut crude prices.

Crude prices are under pressure on fresh concerns about China’s economy after a unit of Zhongzhi Enterprise Group, one of China’s top private wealth managers, missed payments on multiple high-yield investment products.  The worsening of China’s debt crisis threatens to curb economic growth and demand for commodities, including crude oil.

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

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

AUG 14 ALL AFTERNOON 

AUG 22  13:00 TO 15:30

AUG 23 ALL AFTERNOON

SEPT 01 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 “PARTIAL FILL ONLY” today/tonight, Saturday prices will DROP 5 cents then Sunday look for another 3 cent drop in prices~Be Safe

NMEX Crude      $ 83.19 UP $.3700

NYMEX ULSD     $3.1215 DN $.0318

NYMEX Gas       $2.9649 UP $.0602

NEWS

September WTI crude oil on Friday closed up +0.37 (+0.45%), and Sep RBOB gasoline closed up +6.02 (+2.07%).

Crude oil and gasoline prices Friday posted moderate gains.  Crude prices rose Friday after a monthly report from the International Energy Agency (IEA) said global oil demand has surged to a record and that crude prices may move even higher.  Crude prices fell back from their best levels Friday when the dollar index climbed to a 5-week high.

Crude found support in Friday’s monthly report from the IEA that said global crude oil usage averaged a record 103 million bpd in June and may soar even higher this month.  The IEA also said global crude supplies have tightened, leaving oil inventories in developed nations about 115 million bpd below their five-year average.

Strength in the crude crack spread supports crude prices after the crack spread Friday rose to a 9-1/2 month high.  Strength in the crack spread encourages refiners to purchase crude oil and refine it into gasoline and distillates.

JPMorgan Chase said Friday that it sees key oil market gauges “pointing to a rapidly tightening physical market and that prices will continue to climb toward $90 a barrel, or even above, by September.”

A negative factor for crude was Friday’s Chinese economic news that showed a slowdown in credit growth, signaling weakness in the economy after Jul new yuan loans rose +345.9 billion yuan, weaker than expectations of 780.0 billion yuan and the smallest amount of loans in nearly 14 years.

In a bearish factor, China’s July crude imports fell -19% m/m to 10.33 million bpd, the smallest volume in 6 months.  Also, Vortexa said China’s onshore crude inventories have expanded to a record 1.02 billion bbl.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s Jun crude oil imports fell -1.3% y/y to 19.7 MMT, the lowest in 7 months.

Crude has support on Tuesday’s comments from Ukraine President Zelensky, who said his country would retaliate against Russian ships in the Black Sea if Russia continued to block Ukrainian ports.   Ukrainian drones on Sunday attacked a Russian oil tanker in the Black Sea, a route that accounts for 20% of the oil that Russia sells daily on global markets.

Crude prices have carryover support from last Thursday when Saudi Arabia and Russia said they would extend their crude production cuts.  Saudi Arabia on Thursday said it will extend its 1 million bpd cut in crude production into September and said its crude output may “be extended, or extended and deepened.”  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Meanwhile, Russian Deputy Prime Minister Novak said Russia “will continue to voluntarily reduce its oil supply in September by 300,000 bpd” to balance the market.  Russia cut its crude output by 500,000 bpd in August.

OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.

A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in the four weeks to Aug 6 dropped to 3.02 million bpd, about 870,000 bpd below the peak in mid-May.

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 -4.6% w/w to 103.05 million bbl as of Aug 4.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of Aug 4 were -0.4% below the seasonal 5-year average, (2) gasoline inventories were -7.2% below the seasonal 5-year average, and (3) distillate inventories were -16.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Aug 4 jumped +3.3% w/w to 12.6 million bpd, the most in over three years.  U.S. crude oil production is moderately 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 Aug 11 were unchanged at a 17-month low of 525 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs are more than triple the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

AUG 21 ALL AFTERNOON

AUG 22  13:00 TO 15:30

AUG 23 ALL AFTERNOON

SEPT 01 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/tonight, Friday prices will JUMP UP another 12 cents BUT Saturday we’ll see prices drop back down 5 cents ~Be Safe

NMEX Crude      $ 82.82 DN $1.5800

NYMEX ULSD     $3.1533 DN $0.0537

NYMEX Gas       $2.9047 DN $0.0237

NEWS

September WTI crude oil on Thursday closed down -1.58 (-1.87%), and Sep RBOB gasoline closed down -2.37 (-0.81%). Crude oil and gasoline prices Thursday gave up an early advance and closed moderately lower.  Crude fell back from an 8-3/4 month high posted in overnight trade and moved lower as funds liquidated long positions on signs of a slowdown in the U.S. economy after weekly jobless claims rose to a 5-week high.  Losses in crude accelerated after the dollar recovered from early losses and moved higher.

In a bearish factor, China’s July crude imports fell -19% m/m to 10.33 million bpd, the smallest volume in 6 months.  Also, Vortexa said China’s onshore crude inventories have expanded to a record 1.02 billion bbl. A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s Jun crude oil imports fell -1.3% y/y to 19.7 MMT, the lowest in 7 months.

Crude has support on Tuesday’s comments from Ukraine President Zelensky, who said his country would retaliate against Russian ships in the Black Sea if Russia continued to block Ukrainian ports.   Ukrainian drones on Sunday attacked a Russian oil tanker in the Black Sea, a route that accounts for 20% of the oil that Russia sells daily on global markets.

Crude prices have carryover support from last Thursday when Saudi Arabia and Russia said they would extend their crude production cuts.  Saudi Arabia on Thursday said it will extend its 1 million bpd cut in crude production into September and said its crude output may “be extended, or extended and deepened.”  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Meanwhile, Russian Deputy Prime Minister Novak said Russia “will continue to voluntarily reduce its oil supply in September by 300,000 bpd” to balance the market.  Russia cut its crude output by 500,000 bpd in August. OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.

A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in the four weeks to Aug 6 dropped to 3.02 million bpd, about 870,000 bpd below the peak in mid-May. 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 -4.6% w/w to 103.05 million bbl as of Aug 4.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of Aug 4 were -0.4% below the seasonal 5-year average, (2) gasoline inventories were -7.2% below the seasonal 5-year average, and (3) distillate inventories were -16.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Aug 4 jumped +3.3% w/w to 12.6 million bpd, the most in over three years.  U.S. crude oil production is moderately 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 Aug 4 fell by -4 rigs to a 17-month low of 525 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs are more than triple the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

AUG 22 AT 13:00 TO 15:30

AUG 23 AT NOON

SEPT 01 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

• Crude oil prices. The Brent crude oil spot price averages $85 per barrel (b) in August in our forecast. Crude oil prices have increased since June, primarily because of extended voluntary cuts to Saudi Arabia’s crude oil production and increasing global demand. We expect these factors will continue to reduce global oil inventories and put upward pressure on oil prices in the coming months, with the Brent price averaging $86/b in the second half of 2023 (2H23), up about $7/b from our July STEO forecast for the same period. Rising global oil production in 2024 in our forecast keeps pace with oil demand and puts moderate downward pressure on crude oil prices beginning in the second quarter of 2024 (2Q24).

• Global oil production. We forecast global liquid fuels production will increase by 1.4 million barrels per day (b/d) in 2023. Non-OPEC production increases by 2.1 million b/d in 2023, which is partly offset by a drop in OPEC liquid fuels production. In 2024, global production increases by 1.7 million b/d, with 1.2 million b/d coming from non-OPEC countries. Non-OPEC production growth in the forecast is led by the United States, Brazil, Canada, Guyana, and Norway.

• U.S. crude oil production. As a result of higher expected well-level productivity and higher crude oil prices, we expect U.S. crude oil production will average 12.8 million b/d in 2023 and 13.1 million b/d in 2024, both annual records.

• Natural gas production. Associated natural gas production growth in the Permian Basin, driven by higher oil prices, has supported U.S. dry natural gas production in 2023 despite a decline in natural gas prices. We expect production to average about 104 billion cubic feet per day (Bcf/d) through the end of 2024, compared with 103 Bcf/d in 2Q23. Flat production largely reflects continuing growth in associated natural gas production offset by declines in natural gas directed drilling.

• Electricity generation. Hot temperatures in July, especially in the southern states, pushed U.S. electricity demand to near-record levels. We estimate that electricity sales totaled 388 billion kilowatthours in July, roughly equal to the record electricity consumption in July and August 2022.

• U.S. economy. U.S. GDP growth in our forecast increases by 1.9% in 2023, up from 1.5% in last month’s forecast. We apply energy price forecasts to the S&P Global macroeconomic model to generate the forecasts for the U.S. economy used in our STEO.

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Thursday prices will JUMP back UP 7 cents ~Be Safe

NMEX Crude      $ 84.40 UP $1.4800

NYMEX ULSD     $3.2070 UP $0.1214

NYMEX Gas       $2.9284 UP $0.0833

NEWS

September WTI crude oil on Wednesday closed up +1.48 (+1.78%), and Sep RBOB gasoline closed up +8.33 (+2.93%).

Crude oil and gasoline prices Wednesday posted moderate gains, with crude climbing to an 8-3/4 month high and gasoline rising to a 2-week high.  Oil prices rallied on concern that Russian crude oil exports could be disrupted by the Russian-Ukraine war, further tightening global supplies.  Crude oil prices fell back from their best levels after weekly EIA crude inventories rose more than expected.

Crude has support on Tuesday’s comments from Ukraine President Zelensky, who said his country would retaliate against Russian ships in the Black Sea if Russia continued to block Ukrainian ports.   Ukrainian drones on Sunday attacked a Russian oil tanker in the Black Sea, a route that accounts for 20% of the oil that Russia sells daily on global markets.

Crude prices have carryover support from last Thursday when Saudi Arabia and Russia said they would extend their crude production cuts.  Saudi Arabia on Thursday said it will extend its 1 million bpd cut in crude production into September and said its crude output may “be extended, or extended and deepened.”  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Meanwhile, Russian Deputy Prime Minister Novak said Russia “will continue to voluntarily reduce its oil supply in September by 300,000 bpd” to balance the market.  Russia cut its crude output by 500,000 bpd in August.

OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.

A bullish factor for crude oil is a decline in Russian crude shipments.  Vessel-tracking data monitored by Bloomberg showed Russian crude oil shipments in the four weeks to Aug 6 dropped to 3.02 million bpd, about 870,000 bpd below the peak in mid-May.

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 -4.6% w/w to 103.05 million bbl as of Aug 4.

In a bearish factor, China’s July crude imports fell -19% m/m to 10.33 million bpd, the smallest volume in 6 months.  Also, Vortexa said China’s onshore crude inventories have expanded to a record 1.02 billion bbl.

A decline in crude demand in India, the world’s third-biggest crude consumer, is bearish for oil prices.  India’s Jun crude oil imports fell -1.3% y/y to 19.7 MMT, the lowest in 7 months.

Wednesday’s weekly EIA crude report was mixed for crude prices.  On the bullish side, EIA gasoline stockpiles fell -2.66 million bbl, a larger draw than expectations of -200,000 bbl.  Also, EIA distillate supplies unexpectedly fell -1.71 million bbl versus expectations of a +386,000 bbl build.  On the bearish side, EIA crude inventories rose +5.85 million bbl, a larger increase than expectations of +2.3 million bbl.  Also, U.S crude production in the week ended Aug 4 rose +3.3% w/w to 12.6 million bpd, the most in over three years.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of Aug 4 were -0.4% below the seasonal 5-year average, (2) gasoline inventories were -7.2% below the seasonal 5-year average, and (3) distillate inventories were -16.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended Aug 4 jumped +3.3% w/w to 12.6 million bpd, the most in over three years.  U.S. crude oil production is moderately 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 Aug 4 fell by -4 rigs to a 17-month low of 525 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on Dec 2, 2022.  Still, U.S. active oil rigs are more than triple the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity from pandemic lows.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

AUG 14 NOON

AUG 22 AT 13:00 TO 15:30

AUG 23 AT NOON

SEPT 01 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