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

NMEX Crude      $ 69.37 UP $.2100

NYMEX ULSD     $2.4388 UP $.0317

NYMEX Gas       $2.5375 UP $.0203

NEWS

Oil edged higher as a weaker dollar made the commodity more attractive to importers, with the market so far shrugging off the dramatic but short-lived rebellion inside Russia.

Calm returned to Moscow following the end of the uprising led by Wagner Group head Yevgeny Prigozhin, with investors waiting to see whether it presaged the potential for more turbulence in Russia. Despite the country being a major OPEC+ producer, oil prices were unmoved by the mutiny.

“There is very little reaction and not much disruption,” S&P Global Inc. Vice Chairman Daniel Yergin said at a conference in Kuala Lumpur. “The thing that is dominating the oil markets right now is economics, not geopolitics.”

Goldman Sachs Group Inc. also said the uprising’s impact on oil prices may be limited because spot fundamentals haven’t changed. Yet RBC Capital Markets said the risk of further civil unrest  “must be factored into our oil analysis.”

Oil has dropped around 13% this year, in part due to Russia’s robust exports but also reflecting monetary tightening in the US and a lackluster economic recovery in China. China’s economy continues to show signs of losing momentum as recent data showed slowed spending on everything from holiday travel to cars and homes.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEPT  01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

 “To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please PARTIAL FILL ONLY today, prices are UP 9 cents but will drop 10 cents Saturday then Sunday prices will continue down another 6 cents~ Be Safe

NMEX Crude      $ 69.16 DN $.3500

NYMEX ULSD     $2.4071 DN $.0584

NYMEX Gas       $2.5172 DN $.0329

NEWS

Crude oil and gasoline prices Friday extended Thursday’s sell-off on economic gloom driven by the weak U.S. and Eurozone purchasing manager reports.  The preliminary-June S&P Thursday’s EIA report showed that (1) U.S. crude oil inventories as of June 16 were -0.7% below the seasonal 5-year average, (2) gasoline inventories were -7.2% below the seasonal 5-year average, and (3) distillate inventories were -14.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended June 16 fell -200,000 bpd (-1.6%) to 12.2 million from the 3-year high of 12.4 million bpd posted in the week ended June 9.  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 June 23 fell by -6 to 546 rigs, a 1-1/4 year low.  That is well below the 3-1/4 year high of 627 rigs posted on December 2, 2022.  U.S. active oil rigs have more than tripled from the 18-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity. U.S. PMI fell by -2.1 points to a 6-month low of 46.3, weaker than expectations for a +0.1 point increase to 48.5.  Meanwhile, the preliminary-June S&P Eurozone composite PMI fell by -2.5 points to a 5-month low of 50.3, much weaker than market expectations of 52.5.

Oil market traders were already gloomy about energy demand after Fed Chair Powell’s hawkish testimony earlier this week and after the Bank of England’s +50 bp rate hike.  Crude oil prices were also undercut by Friday’s +0.50% rally in the dollar index. 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 +5% w/w to 107.12 million bbl in the week ended June 16. Oil prices continue to be undercut by concern about weaker Chinese energy demand.  China’s National Petroleum Corp (CNPC), China’s largest oil and gas producer, on Tuesday, cut its 2023 China crude oil demand forecast to +3.5% to 740 MMT from a March forecast of +5.1% to 756 MMT.  In another sign of weak Chinese oil demand, analytics firm Kpler recently reported that China’s crude oil stockpiles rose to a 2-year high in May of 966 million bbl, well above the five-year average of 858 million bbl.

Crude prices jumped earlier this month after OPEC+ on June 4 agreed to maintain its crude production levels.  However, Saudi Arabia said it will voluntarily cut its crude output by 1 million bpd starting in July, and Saudi Energy Minister Price Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to the oil market.”  He also said that next month’s additional cuts could be extended, but they will keep the market “in suspense” about whether this will happen.  OPEC May crude production fell -500,00 bpd to a 16-month low of 28.26 million bpd.

Thursday’s EIA report was generally supportive (the report was delayed by a day due to Monday’s holiday).  Crude oil inventories in the week ended June 16 fell by -3.83 million bbls, showing less oil supply than expectations for a +450,000 bbl build.  Gasoline inventories rose by +479,000, a smaller build than expectations of +800,000 bbl.  Distillate inventories rose by +434,000, less than expectations for a +1.0 million build.  Crude oil inventories at Cushing fell by -98,000 bbl.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEPT  01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please KEEP YOUR TANKS COMPLETELY FULL OF FUEL today/tonight, Friday prices will jump UP 9 cents ~ Be Safe

NMEX Crude      $ 69.51 DN $3.0200

NYMEX ULSD     $2.4655 DN $0.0987

NYMEX Gas       $2.5501 DN $0.0740

NEWS

NEW YORK, June 22 (Reuters) – Oil futures fell about 4% on Thursday, as a bigger-than-expected Bank of England rate hike prompted worries about the economy and fuel demand that outweighed support from a surprise draw in U.S. oil supplies.Brent futures settled down $2.98, or 3.9%, to $74.14 a barrel. U.S. West Texas Intermediate crude futures were down $3.02, or 4.2%, at $69.51. The Bank of England raised interest rates by a bigger-than-expected half a percentage point to fight stubborn inflation. It was the central bank’s 13th straight rate hike. Higher interest rates could slow economic growth and reduce oil demand.

Feeding caution, U.S. Federal Reserve Chair Jerome Powell said two more rate hikes of 25 basis points each by the end of the year was “a pretty good guess.” “We’re locked in a trading range but prices are held back by the concerns about the economy, the larger economy,” said Phil Flynn, an analyst at Price Futures Group.

In supply, U.S. crude inventories fell by 3.8 million barrels in the last week to 463.3 million barrels, compared with analysts’ expectations in a Reuters poll for a 300,000-barrel rise. U.S. gasoline stocks rose by about 480,000 barrels in the week to 221.4 million barrels, the Energy Information Administration (EIA) said, compared with analysts’ expectations in a Reuters poll for a 100,000-barrel rise.​ Distillate stockpiles, which include diesel and heating oil, rose by about 430,000 barrels in the week to 114.3 million barrels, versus expectations for a 700,000-barrel rise, the EIA data showed. “Given the decline in crude oil and the very modest increases in refined products inventories, I would have thought we would get a better response from the market, but the crude oil and refined product market is simply being weighed down by higher interest rates,” said Andrew Lipow, president of Lipow Oil Associates in Houston.

Investors are now awaiting Chinese factory activity data due next week, which could indicate the strength of China’s economy.

An executive at U.S. shale producer EOG Resources (EOG.N) said oil prices could rise as muted increases in U.S. oil production and cuts by OPEC+ producers will limit supply in the months ahead.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEPT  01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please fuel as needed tonight but plan on Thursday’s 7 cent drop in prices~Be Safe

NMEX Crude      $ 72.53 UP $1.3400

NYMEX ULSD     $2.5642 UP $0.0888

NYMEX Gas       $2.6241 UP $0.0149

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEPT  01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

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

NMEX Crude      $ 71.19 DN $.7300

NYMEX ULSD     $2.4754 DN $.0760

NYMEX Gas       $2.6092 DN $.0713

NEWS

Crude oil and gasoline prices Tuesday settled moderately lower.  A stronger dollar Tuesday was bearish for crude prices, along with a selloff in stocks, which weighs on confidence in the economic outlook and energy demand.  Also, Chinese energy demand concerns are weighing on crude prices after the China National Petroleum Corp (CNPC) cut its 2023 China crude oil demand estimate.

Crude prices came under pressure Tuesday after the China National Petroleum Corp (CNPC), China’s largest oil and gas producer, cut its 2023 China crude demand estimate.  The CNPC forecasts 2023 China crude demand will grow by +3.5% to 740 MMT, down from a March estimate of +5.1% to 756 MMT.

A bearish factor for crude is the weakness in Chinese energy demand, which has resulted in higher Chinese crude oil stockpiles.  According to analytics firm Kpler, China’s crude oil stockpiles rose to a 2-year high in May of 966 million bbl, well above the five-year average of 858 million bbl.

Crude prices jumped earlier this month after OPEC+ on June 4 agreed to maintain its crude production levels.  However, Saudi Arabia said it will voluntarily cut its crude output by 1 million bpd starting in July, and Saudi Energy Minister Price Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to the oil market.”  He also said that next month’s additional cuts could be extended, but they will keep the market “in suspense” about whether this will happen.  OPEC May crude production fell -500,00 bpd to a 16-month low of 28.26 million bpd.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to June 11 are at 3.63 million bpd, 250,000 bpd higher than they were in the four weeks to Feb 26.  Crude shipments from Russian ports are +1.4 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.

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 +5% w/w to 107.12 million bbl in the week ended June 16.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of June 9 were -0.6% below the seasonal 5-year average, (2) gasoline inventories were -7.1% below the seasonal 5-year average, and (3) distillate inventories were -14.5% below the 5-year seasonal average.  U.S. crude oil production in the week ended June 9 was unchanged w/w at a 3-year high of 12.4 million bpd, only 0.7 million bpd (-5.3%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended June 16 fell by -4 to 552 rigs, a 13-1/2 month low.  That is well 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

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEPT  01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

he 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 KEEP YOUR TANKS FULL OF FUEL today/tonight, Saturday prices will jump UP 12 THEN Sunday look for prices to jump UP another 7 cents ~Be Safe

NMEX Crude      $ 71.78 UP $1.1660

NYMEX ULSD     $2.5514 UP $0.0718

NYMEX Gas       $2.6805 UP $0.0388

NEWS

July WTI crude oil on Friday closed up +1.16 (+1.64%), and July RBOB gasoline closed up +3.88 (+1.47%).

Crude oil and gasoline prices Friday moved higher the entire day, with crude posting a 1-week high and gasoline posting a 2-week high.  Crude prices rose Friday on hopes that China will boost stimulus measures to spur economic growth and energy demand.  Crude extended its gains Friday afternoon when the weekly report from Baker Hughes showed active U.S. oil rigs fell to a 13-1/2 month low.

An increase in U.S. consumer confidence supports energy demand and crude prices after Friday’s report showed the University of Michigan’s U.S. June consumer sentiment index rose +4.7 to a 4-month high of 63.9, stronger than expectations of 60.0.

Strength in the crude crack spread is bullish for crude prices as the crack spread Friday climbed to a 2-1/2 month high.  The stronger crack spread encourages refiners to boost their crude purchases to refine the crude into gasoline and distillates.

Crude prices found support Wednesday after China issued its third batch of crude oil quotas this year, a positive sign for Chinese energy demand.  Bloomberg reported that the Chinese government gave refiners an allocation of 62.28 million tons, which took the total quota this year to around 194 million tons, +18% more than the same time last year.

A bearish factor for crude is the weakness in Chinese energy demand, which has resulted in higher Chinese crude oil stockpiles.  According to analytics firm Kpler, China’s crude oil stockpiles rose to a 2-year high in May of 966 million bbl, well above the five-year average of 858 million bbl.

Crude prices jumped last Monday after OPEC+ on June 4 agreed to maintain its crude production levels.  However, Saudi Arabia said it will voluntarily cut its crude output by 1 million bpd starting in July, and Saudi Energy Minister Price Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to the oil market.”  He also said that next month’s additional cuts could be extended, but they will keep the market “in suspense” about whether this will happen.  OPEC May crude production fell -500,00 bpd to a 16-month low of 28.26 million bpd.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to June 4 rose to 3.73 million bpd from a revised 3.68 million bpd in the four-week period to May 28.  Crude shipments from Russian ports are +1.4 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.

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 -4.2% w/w to 101.76 million bbl in the week ended June 9.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of June 9 were -0.6% below the seasonal 5-year average, (2) gasoline inventories were -7.1% below the seasonal 5-year average, and (3) distillate inventories were -14.5% below the 5-year seasonal average.  U.S. crude oil production in the week ended June 9 was unchanged w/w at a 3-year high of 12.4 million bpd, only 0.7 million bpd (-5.3%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported Friday that active U.S. oil rigs in the week ended June 16 fell by -4 to 552 rigs, a 13-1/2 month low.  That is well 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

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEPT  01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

 “To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Friday prices will drop 4 cents & you’ll need to keep your tanks completely full of fuel to get ahead of Saturday’s 12 jump UP ~Be Safe

NMEX Crude      $ 70.62 UP $2.3500

NYMEX ULSD     $2.4796 UP $0.1219

NYMEX Gas       $2.6417 UP $0.0871

NEWS

July WTI crude oil on Thursday closed up +2.35 (+3.44%), and July RBOB gasoline closed up +8.71 (+3.41%).

Crude oil and gasoline prices Thursday settled sharply higher.  A slump in the dollar index Thursday to a 1-month low is bullish for energy prices.  Crude also found support on Thursday’s action by the PBOC to lower interest rates, which may revive economic growth and energy demand in China.  In addition, Thursday’s rally in the S&P 500 to a 13-3/4 month high shows confidence in the economic outlook that is supportive of energy demand.

Strength in the crude crack spread is bullish for crude prices as the crack spread Thursday jumped to a 2-1/2 month high.  The stronger crack spread encourages refiners to boost their crude purchases to refine the crude into gasoline and distillates.

Crude prices found support Wednesday after China issued its third batch of crude oil quotas this year, a positive sign for Chinese energy demand.  Bloomberg reported that the Chinese government gave refiners an allocation of 62.28 million tons, which took the total quota this year to around 194 million tons, +18% more than the same time last year.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEPT  01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

NMEX Crude      $ 68.68 DN $1.1500

NYMEX ULSD     $2.3577 DN $0.0378

NYMEX Gas       $2.5546 DN $0.0033

NEWS

July WTI crude oil on Wednesday closed down -1.15 (-1.66%), and July RBOB gasoline  closed down -0.33 (-0.13%).

Crude oil and gasoline prices Wednesday settled lower.  Crude prices gave up an early advance and moved moderately lower after an unexpected build in weekly EIA crude inventories.  Crude prices Wednesday morning initially moved higher after the dollar index fell to a 4-week low and after the S&P 500 rallied to a 13-3/4 month high, which shows confidence in the economic outlook that is supportive for energy demand.

Crude prices found support Wednesday after China issued its third batch of crude oil quotas this year, a positive sign for Chinese energy demand.  Bloomberg reported that the Chinese government gave refiners an allocation of 62.28 million tons, which took the total quota this year to around 194 million tons, +18% more than the same time last year.

Wednesday’s U.S. May PPI report showed prices eased to +1.1% y/y from +2.3% y/y in Apr, better than expectations of +1.5% y/y and the smallest increase in over two years.  The easing of U.S. producer prices bolsters the case for the Fed to pause raising interest rates at today’s FOMC meeting and is supportive of crude prices

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEP   01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

 “To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Fueling Strategy: Please partial fill or not at all today/tonight, Wednesday prices will fall 5 cents BUT will jump UP 9 cents Thursday~Be Safe

NMEX Crude      $ 69.42 UP $2.3000

NYMEX ULSD     $2.3955 UP $0.0864

NYMEX Gas       $2.5579 UP $0.0753

NEWS

July WTI crude oil on Tuesday closed up +2.30 (+3.43%), and July RBOB gasoline closed up +7.53 (+3.03%). Crude oil and gasoline prices Tuesday rallied sharply.  A slump in the dollar index Tuesday to a 3-week low was bullish for energy prices.  Also, the outlook for China to boost its stimulus measures is supportive of economic growth and energy demand. Crude prices fell -10 cents/bbl below their Tuesday afternoon close after the API reported that U.S. crude supplies rose by +1.0 million bbl last week.  The consensus is for Wednesday’s weekly EIA crude inventories to decline by -1.5 million bbl.

Crude prices rallied Tuesday on a Bloomberg report that said the Chinese government is considering a broad package of stimulus measures.  Crude also garnered support after th repurchase rate, which bolsters the outlook for a cut in one-year policy loans on Thursday. e People’s Bank of China (PBOC) Tuesday unexpectedly lowered its seven-day reverse repurchase rate, which bolsters the outlook for a cut in one-year policy loans on Thursday.

Tuesday’s U.S. May CPI report showed prices eased to +4.0% y/y from +4.9% y/y in Apr, better than expectations of +4.1% y/y and the smallest increase in over two years.  The easing of U.S. consumer prices bolsters the case for the Fed to pause raising interest rates at the Tue/Wed FOMC meeting and is supportive of crude prices. Resurgent wildfires in Canada may curb Canadian crude output and is bullish for prices.  Rystad Energy said Tuesday that 300,000 bpd of crude production in British Columbia is under threat as fires reignite across the region.

A bearish factor for crude is the weakness in Chinese energy demand, which has resulted in higher Chinese crude oil stockpiles.  According to analytics firm Kpler, China’s crude oil stockpiles rose to a 2-year high in May of 966 million bbl, well above the five-year average of 858 million bbl.

Crude prices jumped last Monday after OPEC+ on June 4 agreed to maintain its crude production levels.  However, Saudi Arabia said it will voluntarily cut its crude output by 1 million bpd starting in July, and Saudi Energy Minister Price Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to the oil market.”  He also said that next month’s additional cuts could be extended, but they will keep the market “in suspense” about whether this will happen.  OPEC May crude production fell -500,00 bpd to a 16-month low of 28.26 million bpd.

Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output.  Tanker-tracking data from Bloomberg shows Russia’s crude exports in the four weeks to June 4 rose to 3.73 million bpd from a revised 3.68 million bpd in the four-week period to May 28.  Crude shipments from Russian ports are +1.4 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.

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 -4.2% w/w to 101.76 million bbl in the week ended June 9.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of June 2 were -2.2% below the seasonal 5-year average, (2) gasoline inventories were -7.5% below the seasonal 5-year average, and (3) distillate inventories were -15.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended June 2 rose +1.6% w/w to a 3-year high of 12.4 million bpd, only 0.7 million bpd (-5.3%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended June 9 rose by +1 to 556 rigs.  That is well below the 2-1/2 year high of 627 rigs posted on December 2 and just above the prior week’s 13-month low of 555 rigs.  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 14 AT 2:00 PM

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEP   01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams