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Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Wednesday prices will DROP 5 cents ~Be Safe

NMEX Crude      $ 82.92 UP $.9800

NYMEX ULSD     $3.0856 UP $.0701

NYMEX Gas       $2.8451 UP $.0407

NEWS

September WTI crude oil on Tuesday closed up +0.98 (+1.20%), and Sep RBOB gasoline closed up +4.07 (+1.45%).

Crude oil and gasoline prices Tuesday shook off early losses and closed moderately higher on concerns about disruptions to Russian crude supplies.  Ukraine President Zelensky 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 Tuesday initially moved lower on a stronger dollar and on a negative Chinese trade report.  China Jul exports fell -14.5% y/y, weaker than expectations of -13.2% y/y and the biggest decline in nearly 3-1/2 years.  Also, Jul imports fell -12.4% y/y, weaker than expectations of -5.6% y/y and the biggest decline in 6 months.

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

Concern about the health of the U.S. banking sector undercut stocks and confidence in the economic outlook Tuesday and is bearish for crude after Moody’s Investors Service lowered credit ratings for ten small and midsize U.S. banks and adopted a “negative” outlook for 11 other lenders.

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.  Also, 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 August 4.

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.

The consensus is that Wednesday’s weekly EIA crude inventories will climb +2.3 million bbl.

Last Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of July 28 were -1.6% below the seasonal 5-year average, (2) gasoline inventories were -6.3% below the seasonal 5-year average, and (3) distillate inventories were -14.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 28 was unchanged w/w at 12.2 million bpd.  U.S. crude oil production is well 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 August 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 December 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

Casey’s guests and partners-

The Caseys in Osceola IA will be closed for 2 weeks.

We are doing some tank work and the parking lot.

(1706 Jeffreys Dr)

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

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

NMEX Crude      $ 81.94 DN $.8800

NYMEX ULSD     $3.0155 DN $.0467

NYMEX Gas       $2.8044 UP $.0213

NEWS

September WTI crude oil on Monday closed down -0.88 (-1.06%), and Sep RBOB gasoline  closed up +2.13 (+0.77%).

Crude oil and gasoline prices Monday settled mixed.  Crude prices fell back from a 3-3/4 month high posted in overnight trade and turned lower on concerns the Fed will continue to raise interest rates, potentially undercutting economic growth and energy demand.

Crude prices initially posted a 3-3/4 month high in overnight trade after Ukraine drones 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, which elevates the risks to Russian crude supplies.

Hawkish Fed comments signal the Fed may continue to raise interest rates, which could curb economic growth and energy demand.  NY Fed President Williams said, “I expect that Fed policy will need to be kept restrictive for some time” and that the need for more rate hikes is “an open question.”   Also, Fed Governor Bowman said that “additional rate increases will likely be needed to get inflation down to the FOMC’s 2% target” to fully restore price stability.

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.  Also, 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 July 30 dropped to a 7-month low of 2.98 million bpd.

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 August 4.

An improvement in Chinese crude demand is bullish for prices after government trade data showed China’s June crude imports rose +4.6% m/m to 12.72 million bpd, the most in three years.

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.

Last Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of July 28 were -1.6% below the seasonal 5-year average, (2) gasoline inventories were -6.3% below the seasonal 5-year average, and (3) distillate inventories were -14.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 28 was unchanged w/w at 12.2 million bpd.  U.S. crude oil production is well 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 August 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 December 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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Today (Friday) prices are down 2, Saturday prices will JUMP back UP 7.5 cents ~Be Safe

NMEX Crude      $ 82.82 UP $1.2700

NYMEX ULSD     $3.0622 DN $0.0127

NYMEX Gas       $2.7831 UP $0.0184

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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Friday look for a 2 cent drop, Saturday prices will JUMP back UP 7.5 cents ~Be Safe

NMEX Crude      $ 81.55 UP $2.0600

NYMEX ULSD     $3.0749 UP $0.0749

NYMEX Gas       $2.7647 DN $0.0111

NEWS

September WTI crude oil on Thursday closed up +2.06 (+2.59%), and Sep RBOB gasoline closed down -1.11 (-0.40%).

Crude oil and gasoline prices Thursday settled mixed.  Crude prices recovered from a 1-week low Thursday and rallied sharply after Saudi Arabia said it would extend its 1 million bpd production cut through September.  Dollar weakness also boosted energy prices after the dollar index fell from a 3-1/2 week high and turned lower.

Crude prices rallied Thursday after 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.  Also, OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.  The OPEC+ Joint Ministerial Monitoring Committee will hold an online review Friday to gauge the impact of the group’s supply reductions.

Crude prices extended their gains Thursday after 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 pledged to cut its crude output by 500,000 bpd in August.

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 July 30 dropped to a 7-month low of 2.98 million bpd.

Weakness in the crude crack spread is bearish for oil prices after the crack spread Thursday fell to a 1-week low.  The weaker crack spread discourages refiners from purchasing crude oil and refining it into gasoline and distillates.

A decline in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -2.2% w/w to 105.06 million bbl as of July 28.

An improvement in Chinese crude demand is bullish for prices after government trade data showed China’s June crude imports rose +4.6% m/m to 12.72 million bpd, the most in three years.

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 report showed that (1) U.S. crude oil inventories as of July 28 were -1.6% below the seasonal 5-year average, (2) gasoline inventories were -6.3% below the seasonal 5-year average, and (3) distillate inventories were -14.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 28 was unchanged w/w at 12.2 million bpd.  U.S. crude oil production is well 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 July 28 fell by -1 rig to a 16-1/2 month low of 529 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on December 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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Thursday prices will go UP 4 Cents, Friday look for a 2 cent drop~Be Safe

NMEX Crude      $ 79.49 DN $1.8800

NYMEX ULSD     $3.0043 DN $0.0191

NYMEX Gas       $2.7778 DN $0.0972

NEWS

September WTI crude oil on Wednesday closed down -1.88 (-2.31%), and Sep RBOB gasoline closed down -9.72 (-3.38%).

Crude oil and gasoline prices Wednesday closed sharply lower.  Crude prices fell back from a 3-1/2 month high and retreated after a plunge in stocks sparked risk-off sentiment in asset markets that undercut crude prices.  Also, Wednesday’s rally in the dollar index to a 3-week high was bearish for energy prices.  Crude prices briefly recovered their losses after weekly EIA crude inventories fell more than expected.

Fitch Ratings late Tuesday cut the sovereign credit rating of the U.S. by one level to AA+ from AAA, which sent stocks tumbling and sparked a risk-off sentiment in asset prices.

Crude oil prices have support from hopes China will implement policies to revive economic growth.  Last week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected.  The ruling Communist Party’s 24-member Politburo, China’s top decision-making body led by President Xi Jinping, promised “counter-cyclical” policies, which imply an easing bias.

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 July 30 dropped to a 7-month low of 2.98 million bpd.

In a supportive factor for oil prices, Saudi Arabia last month said it would extend its unilateral 1 million bpd production cut through August, keeping Saudi Arabia’s crude output at about 9 million bpd, the lowest level in several years.  Also, Russia voluntarily pledged to cut 500,000 bpd of crude output in August.  Also, OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.

A decline in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -2.2% w/w to 105.06 million bbl as of July 28.

An improvement in Chinese crude demand is bullish for prices after government trade data showed China’s June crude imports rose +4.6% m/m to 12.72 million bpd, the most in three years.

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 report was mixed for crude prices.  On the bearish side, EIA gasoline supplies unexpectedly rose +1.48 million bbl versus expectations of a -1.55 million bbl decline as implied U.S. gasoline demand on a four-week rolling basis fell for a fourth straight week.  On the bullish side, EIA crude inventories plunged by a record -17.05 million bbl, a much larger draw than expectations of -1.05 million bbl.  Also, EIA distillate stockpiles unexpectedly fell -791,000 bbl versus expectations of a +100,000 bbl build.  In addition, crude supplies at Cushing, the delivery point of WTI futures, fell -1.26 million bbl.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of July 28 were -1.6% below the seasonal 5-year average, (2) gasoline inventories were -6.3% below the seasonal 5-year average, and (3) distillate inventories were -14.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 28 was unchanged w/w at 12.2 million bpd.  U.S. crude oil production is well 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 July 28 fell by -1 rig to a 16-1/2 month low of 529 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on December 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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Wednesday prices will go UP 3.5 Cents~Be Safe

NMEX Crude      $ 81.37 DN $.4300

NYMEX ULSD     $3.0234 UP $.0379

NYMEX Gas       $2.8730 DN $.0225

NEWS

September WTI crude oil on Tuesday closed down -0.43 (-0.53%), and Sep RBOB gasoline closed down -2.25 (-0.78%).

Crude oil and gasoline prices Tuesday settled moderately lower.  Tuesday’s rally in the dollar index to a 3-week high weighed on energy prices.  Also, Tuesday’s slide in stock prices prompted a risk-off sentiment in asset markets that undercut crude prices.

Tuesday’s U.S. and Chinese manufacturing news was weaker-than-expected and was bearish for energy demand and crude prices.  The U.S. Jul ISM manufacturing index rose +0.4 to 46.4, weaker than expectations of 46.9.  Also, the China Jul Caixin manufacturing PMI fell -1.3 to a 6-month low of 49.2, weaker than expectations of 50.1.

Crude oil prices have support from hopes China will implement policies to revive economic growth.  Last week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected.  The ruling Communist Party’s 24-member Politburo, China’s top decision-making body led by President Xi Jinping, promised “counter-cyclical” policies, which imply an easing bias.

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 July 30 dropped to a 7-month low of 2.98 million bpd.

In a supportive factor for oil prices, Saudi Arabia earlier this month said it would extend its unilateral 1 million bpd production cut through August, keeping Saudi Arabia’s crude output at about 9 million bpd, the lowest level in several years.  Also, Russia voluntarily pledged to cut 500,000 bpd of crude output in August.  However, Russia has yet to implement its pledged crude production cuts fully.  Russian crude production cuts totaled 350,000 bpd in June, below the 500,000 bpd of cuts it said it would implement in March.  Meanwhile, OPEC crude production in June rose +80,000 bpd to 28.57 million bpd.

A decline in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -2.2% w/w to 105.06 million bbl as of July 28.

An improvement in Chinese crude demand is bullish for prices after government trade data showed China’s June crude imports rose +4.6% m/m to 12.72 million bpd, the most in three years.

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.

The consensus is that Wednesday’s weekly EIA crude inventories will fall -1.05 million bbl.

Last Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of July 21 were +1.6% above the seasonal 5-year average, (2) gasoline inventories were -7.4% below the seasonal 5-year average, and (3) distillate inventories were -14.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 21 fell -0.8% w/w to 12.2 million bpd.  U.S. crude oil production is well 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 July 28 fell by -1 rig to a 16-1/2 month low of 529 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on December 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

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

NMEX Crude      $ 81.80 UP $1.2200

NYMEX ULSD     $2.9909 UP $0.0323

NYMEX Gas       $2.9290 DN $0.0268

NEWS

September WTI crude oil on Monday closed up +1.22 (+1.51%), and Sep RBOB gasoline closed up +0.79 (+0.27%).

Crude oil and gasoline prices Monday settled moderately higher, with crude posting a 3-1/2 month high.  Recent supply cuts from OPEC+ and Russia are underpinning crude oil prices.

Also, Monday’s global economic news was supportive of energy demand and crude prices.  Eurozone Q2 GDP rose +0.3% q/q and +0.6% y/y, stronger than expectations of +0.2% q/q and +0.5% y/y.  Also, the China Jul manufacturing PMI unexpectedly rose +0.3 to 49.3, stronger than expectations of a decline to 48.9.  In addition, the Japan Jul consumer confidence index rose +0.9 to a 19-month high of 37.2, stronger than expectations of 36.2.

Crude prices have support on signs China will implement policies to revive economic growth.  Last week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected.  The ruling Communist Party’s 24-member Politburo, China’s top decision-making body led by President Xi Jinping, promised “counter-cyclical” policies, which imply an easing bias.

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 July 23 dropped to a 7-month low of 1.17 million bpd.

In a supportive factor for oil prices, Saudi Arabia earlier this month said it would extend its unilateral 1 million bpd production cut through August, keeping Saudi Arabia’s crude output at about 9 million bpd, the lowest level in several years.  Also, Russia voluntarily pledged to cut 500,000 bpd of crude output in August.  However, Russia has yet to implement its pledged crude production cuts fully.  Russian crude production cuts totaled 350,000 bpd in June, below the 500,000 bpd of cuts it said it would implement in March.  Meanwhile, OPEC crude production in June rose +80,000 bpd to 28.57 million bpd.

A decline in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -2.2% w/w to 105.06 million bbl as of July 28.

An improvement in Chinese crude demand is bullish for prices after government trade data showed China’s June crude imports rose +4.6% m/m to 12.72 million bpd, the most in three years.

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.

Last Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of July 21 were +1.6% above the seasonal 5-year average, (2) gasoline inventories were -7.4% below the seasonal 5-year average, and (3) distillate inventories were -14.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 21 fell -0.8% w/w to 12.2 million bpd.  U.S. crude oil production is well 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 July 28 fell by -1 rig to a 16-1/2 month low of 529 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on December 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

JUL  31 AT 16:00

AUG 05 AT 09:30 TO 13:00

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

Fueling Strategy: Please “KEEP YOUR TANKS TOPPED” today/tonight, Saturday prices will go UP 7.5 Cents, Sunday prices will continue UP another 4 Cents~Be Safe

NMEX Crude      $ 80.58 UP $.4900

NYMEX ULSD     $2.9586 UP $.0417

NYMEX Gas       $2.9558 UP $.0053

NEWS

September WTI crude oil on Friday closed up +0.49 (+0.61%), and Sep RBOB gasoline closed up +0.61 (+0.21%).

Crude oil and gasoline prices Friday posted moderate gains, with crude climbing to a 3-1/4 month high and gasoline climbing to a 9-month high.  A weaker dollar Friday was bullish for energy prices.   Crude prices also have support on Friday’s weaker-than-expected U.S. inflation news that may allow the Fed to stop raising interest rates, bolstering the outlook for the U.S. economy to avoid a recession.  Gains in crude were limited as Friday’s mixed global economic news was bearish for growth prospects and energy demand.

Friday’s U.S. inflation news was weaker-than-expected, potentially allowing the Fed to stop raising interest rates, which is positive for economic growth and energy demand.  The Jun PCE core deflator, the Fed’s preferred gauge of inflation, eased to +4.1% y/y from +4.6% y/y in May, better than expectations of +4.2% y/y and the slowest pace of increase in 1-3/4 years.  Also, the Q2 employment cost index rose +1.0% (q/q annualized), slower than expectations of +1.1% and the smallest pace of increase in 2 years.

Friday’s global economic news was mixed for energy demand and crude prices.  On the negative side, U.S. Jun personal income rose +0.3% m/m, weaker than expectations of +0.5% m/m.  Also, the University of Michigan U.S. Jul consumer sentiment was revised lower to 71.6 from the initially reported 72.6.  In addition, Eurozone Jul economic confidence fell -0.8 to a 9-month low of 94.5, weaker than expectations of 95.0.  Finally, German Q2 GDP was unchanged q/q, weaker than expectations of +0.1% q/q.  On the positive side, U.S. Jun personal spending rose +0.5% m/m, stronger than expectations of +0.4% m/m.

Strength in the crude cracks spread supports oil prices as the spread climbed to a 9-month high Friday.  The stronger crack spread encourages refiners to boost their crude purchases and refine the crude into gasoline and distillates.

Crude prices have support on signs China will implement policies to revive economic growth.  This week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected.  The ruling Communist Party’s 24-member Politburo, China’s top decision-making body led by President Xi Jinping, promised “counter-cyclical” policies, which imply an easing bias.

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 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 July 23 dropped to a 7-month low of 1.17 million bpd.

In a supportive factor for oil prices, Saudi Arabia earlier this month said it would extend its unilateral 1 million bpd production cut through August, keeping Saudi Arabia’s crude output at about 9 million bpd, the lowest level in several years.  Also, Russia voluntarily pledged to cut 500,000 bpd of crude output in August.  However, Russia has yet to implement its pledged crude production cuts fully.  Russian crude production cuts totaled 350,000 bpd in June, below the 500,000 bpd of cuts it said it would implement in March.  Meanwhile, OPEC crude production in June rose +80,000 bpd to 28.57 million bpd.

A decline in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa shows the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -2.2% w/w to 106.95 million bbl as of July 21.

An improvement in Chinese crude demand is bullish for prices after government trade data showed China’s June crude imports rose +4.6% m/m to 12.72 million bpd, the most in three years.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of July 21 were +1.6% above the seasonal 5-year average, (2) gasoline inventories were -7.4% below the seasonal 5-year average, and (3) distillate inventories were -14.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 21 fell -0.8% w/w to 12.2 million bpd.  U.S. crude oil production is well 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 July 28 fell by -1 rig to a 16-1/2 month low of 529 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on December 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

 

 

 

Tell Us How We’re Doing On Google Business

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As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 

“Celebrating 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 go UP 6.5 Cents~Be Safe

NMEX Crude      $ 80.09 UP $1.3100

NYMEX ULSD     $2.9169 UP $0.0740

NYMEX Gas       $2.9505 UP $0.0433

NEWS

September WTI crude oil on Thursday closed up +1.31 (+1.66%), and Sep RBOB gasoline closed up +4.13 (+1.45%).

Crude oil and gasoline prices Thursday rallied moderately, with crude posting a 3-1/4 month high and gasoline posting a 9-month high.  Signs of U.S. economic strength that is bullish for energy demand pushed crude prices higher after Thursday’s U.S. news showed Q2 GDP grew more than expected and weekly jobless claims unexpectedly fell to a 5-month low.  Thursday’s rally in the dollar index to a 2-week high limited energy price gains.

Thursday’s U.S economic news was stronger than expected and was supportive of energy demand and crude prices.  Q2 GDP rose +2.4% (q/q annualized), stronger than expectations of +1.8%.  Also, weekly initial unemployment claims unexpectedly fell -7,000 to a 5-month low of 221,000, showing a stronger labor market than expectations of an increase to 235,000.  In addition, Jun pending home sales unexpectedly rose +0.3% m/m, stronger than expectations of a -0.5% m/m decline.  Finally, Jun capital goods new orders nondefense ex-aircraft and parts unexpectedly rose +0.2% m/m, stronger than expectations of a -0.1% m/m decline.

Strength in the crude cracks spread supports oil prices as the spread climbed to a 4-month high Thursday.  The stronger crack spread encourages refiners to boost their crude purchases and refine the crude into gasoline and distillates.

Crude prices have support on signs China will implement policies to revive economic growth.  This week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected.  The ruling Communist Party’s 24-member Politburo, China’s top decision-making body led by President Xi Jinping, promised “counter-cyclical” policies, which imply an easing bias.

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 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 July 16 dropped to a 6-month low of 3.1 million bpd.

In a supportive factor for oil prices, Saudi Arabia earlier this month said it would extend its unilateral 1 million bpd production cut through August, keeping Saudi Arabia’s crude output at about 9 million bpd, the lowest level in several years.  Also, Russia voluntarily pledged to cut 500,000 bpd of crude output in August.  However, Russia has yet to implement its pledged crude production cuts fully.  Russian crude production cuts totaled 350,000 bpd in June, below the 500,000 bpd of cuts it said it would implement in March.  Meanwhile, OPEC crude production in June rose +80,000 bpd to 28.57 million bpd.

A decline in crude in floating storage is bullish for prices.  Monday’s weekly data from Vortexa shows the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -2.2% w/w to 106.95 million bbl as of July 21.

An improvement in Chinese crude demand is bullish for prices after government trade data showed China’s June crude imports rose +4.6% m/m to 12.72 million bpd, the most in three years.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of July 21 were +1.6% above the seasonal 5-year average, (2) gasoline inventories were -7.4% below the seasonal 5-year average, and (3) distillate inventories were -14.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended July 21 fell -0.8% w/w to 12.2 million bpd.  U.S. crude oil production is well 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 July 21 fell by -7 rigs to a 16-month low of 530 rigs.  That is well below the 3-1/4 year high of 627 rigs posted on December 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

JULY 24 AT NOON

 

 

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

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