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

NMEX Crude      $ 67.12 DN $3.0500

NYMEX ULSD     $2.3091 DN $0.0519

NYMEX Gas       $2.4826 DN $0.1106

NEWS

July WTI crude oil on Monday closed down -3.05 (-4.35%), and July RBOB gasoline closed down -11.06 (-4.27%).

Crude oil and gasoline prices Monday sold off sharply, with crude falling to a 6-week low and gasoline sliding to a 1-week low.  A stronger dollar Monday weighed on energy prices.  Also, global energy demand concerns are negative for crude prices after Goldman Sachs cut its crude price forecast again.

Goldman Sachs on Sunday cut its crude price outlook for the third time in the last six months.  Goldman Sachs cut its forecast for Brent crude to $85 a barrel by December, down from a previous forecast of $95 a barrel.

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

Fueling Strategy: Please partial fill only today/tonight, Prices will drop 1.5 cents Saturday the another 3 cents Sunday ~ Be Safe

NMEX Crude      $ 70.17 DN $1.1200

NYMEX ULSD     $2.3610 DN $0.0288

NYMEX Gas       $2.5932 DN $0.0195

NEWS

July WTI crude oil on Friday closed down -1.12 (-1.57%), and July RBOB gasoline closed down -1.95 (-0.75%).  Crude oil and gasoline prices Friday posted moderate losses.  A stronger dollar Friday undercut energy prices.  Also, concern about weakness in China’s energy demand is bearish for crude prices.  A bullish factor for crude was Friday’s rally in the S&P 500 to a 9-3/4 month high, which shows confidence in the economic outlook and energy demand.

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 Monday after OPEC+ Sunday 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.  Goldman Sachs said the latest OPEC production cuts would prompt a draw in global oil inventories that will spark a rally in crude prices into the low $90s per barrel later this year.

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

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 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

Fueling Strategy: Please keep your tanks topped today/tonight, Friday prices will jump UP 3.5 cents  ~Be Safe

NMEX Crude      $ 71.29 DN $1.2400

NYMEX ULSD     $2.3898 DN $0.0120

NYMEX Gas       $2.6127 DN $0.0285

NEWS

July WTI crude oil on Thursday closed down -1.24 (-1.71%), and July RBOB gasoline closed down -2.85 (-1.08%).

Crude oil and gasoline prices this morning gave up an early advance and posted moderate losses on reports that Iran and the U.S. have made progress in talks over Iran’s nuclear program, which could pave the way for more Iranian crude exports.  Crude prices recovered from their worst levels Thursday after the dollar index  dropped to a 2-week low.

Crude prices dropped Thursday after the Israeli newspaper Haaretz said Iran and the U.S. have made progress over Iran’s nuclear program, which could lead to an easing of sanctions on Iranian crude exports and allow additional crude supplies into the global market.

Concern about a slowdown in the global economy is bearish for energy demand after Thursday’s news that U.S. weekly initial unemployment claims rose +28,000 to a 19-month high of 261,000, showing a weaker labor market than expectations of 235,000.  Also, Eurozone Q1 GDP was revised downward to -0.1% q/q and +1.0% y/y from the previously reported unchanged q/q and +1.2% y/y.

Chinese crude demand improved last month after China’s May crude imports climbed to 12.16 million bpd, up +17% from April.

Crude prices jumped Monday after OPEC+ Sunday 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.

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

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

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 2 fell by -15 to a 13-month low of 555 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 14 AT 2:00 PM

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEP   01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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

Fueling Strategy: Please fuel as needed today/tonight, Thursday prices will drop one penny but will jump UP 3.5 cents Friday

~Be Safe

NMEX Crude      $ 72.53 UP $.7900

NYMEX ULSD     $2.4018 UP $.0340

NYMEX Gas       $2.6412 UP $.0769

NEWS

Oil prices climbed about 1% on Wednesday as Saudi Arabia’s plans for deep output cuts more than offset demand woes stemming from rising U.S. fuel stocks and weak Chinese export data. Brent crude futures settled 66 cents, or 0.9%, higher at $76.95 a barrel, while U.S. West Texas Intermediate crude futures gained 79 cents, or 1.1%, to $72.53. Both benchmarks jumped more than $1 on Monday after Saudi Arabia’s decision over the weekend to reduce output by 1 million barrels per day (bpd) to 9 million bpd in July. “Futures seem to be in a ‘tug of war’ with slowing demand for manufacturing, and lighter diesel demand, against expected production cuts coming from OPEC & Saudi,” said Dennis Kissler, senior vice president of trading at BOK Financial.

U.S. crude stocks fell by about 450,000, according to data from the Energy Information Administration, compared with estimates for a 1 million build. Diesel inventories rose by 5.1 million barrels, while markets had estimated a build of 1.33 million. Gasoline inventories also rose more-than-expected at 2.8 million barrels, compared with estimates for a build of 880,000 barrels. The unexpected build in fuel inventories raised concerns over consumption by the world’s top oil user, especially as travel demand grew during the Memorial Day weekend.

Prices fell earlier in the session on weak Chinese economic data. China’s exports shrank much faster than expected in May and imports fell, albeit at a slower pace, as manufacturers struggled to find demand abroad and domestic consumption remained sluggish. Wednesday’s data also showed that crude oil imports into China, the world’s largest oil importer, rose to their third-highest monthly level in May as refiners built up inventories.

A JP Morgan note said forward crude cover in the country has climbed, indicating refiners have not increased processing rates but are instead storing oil. Also, supporting prices, the dollar dipped as chances faded for a Federal Reserve rate hike next week. A weaker greenback helps demand as oil becomes cheaper for foreign buyers. Global economic growth will pick up only moderately over the next year as the full effects of central bank rate hikes are felt, the Organisation for Economic Cooperation and Development said, the latest to flag the impact of monetary tightening.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 14 AT 2:00 PM

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEP   01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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

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

NMEX Crude      $ 71.74 DN $.4100

NYMEX ULSD     $2.3678 DN $.0097

NYMEX Gas       $2.5643 UP $.0399

NEWS

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

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

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

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

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

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

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

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

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

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 14 AT 2:00 PM

JULY  07 AT 2:00 PM

JULY  14 AT NOON

JULY  21 AT 3:00 PM

SEP   01 OUT ALL DAY

NOV 01-02-03 VACATION

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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

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

NMEX Crude      $ 72.15 UP $.4100

NYMEX ULSD     $2.3775 UP $.0206

NYMEX Gas       $2.5244 UP $.0237

NEWS

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

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

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

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

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

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

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

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

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

Last Thursday’s EIA report showed that (1) U.S. crude oil inventories as of May 26 were -2.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -16.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 26 fell -0.8% w/w to 12.1 million bpd, only 0.9 million bpd (-6.9%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended June 2 fell by -15 to a 13-month low of 555 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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

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

NMEX Crude      $ 71.74 UP $1.6400

NYMEX ULSD     $2.3569 UP $0.0422

NYMEX Gas       $2.5007 UP $0.0645

NEWS

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

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

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

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

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

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

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

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

Thursday’s EIA report showed that (1) U.S. crude oil inventories as of May 26 were -2.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -16.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 26 fell -0.8% w/w to 12.1 million bpd, only 0.9 million bpd (-6.9%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported Friday that active U.S. oil rigs in the week ended June 2 fell by -15 to a 13-month low of 555 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 01 AT 10:00 AM

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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

Fueling Strategy: Please fuel as needed today, prices are down 9 cents but will go down another 2 cents Friday then jump UP 6 cents Saturday~Be Safe

NMEX Crude      $ 70.10 UP $2.0100

NYMEX ULSD     $2.3147 UP $0.0638

NYMEX Gas       $2.4362 DN $0.0076

NEWS

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

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

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

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

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

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

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

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

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

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

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

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

Thursday’s EIA report showed that (1) U.S. crude oil inventories as of May 26 were -2.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -16.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 26 fell -0.8% w/w to 12.1 million bpd, only 0.9 million bpd (-6.9%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended May 26 fell by -5 to a 1-year low of 570 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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

Fueling Strategy: Please partial fill only today/tonight, Prices will drop 9 cents Thursday cents then Friday look for another 2 cents drop ~ Be Safe

NMEX Crude      $ 68.09 DN $1.3700

NYMEX ULSD     $2.2596 DN $0.0212

NYMEX Gas       $2.5599 DN $0.0360

NEWS

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

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

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

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

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

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

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

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

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

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

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

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of May 19 were -3.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -17.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 19 rose +0.8% w/w to 12.3 million bpd, only 0.8 million bpd (-6.1%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended May 26 fell by -5 to a 1-year low of 570 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 01 AT 10:00 AM

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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

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

NMEX Crude      $ 69.46 DN $3.2100

NYMEX ULSD     $2.2808 DN $0.0885

NYMEX Gas       $2.5959 DN $0.1075

NEWS

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

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

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

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

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

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

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

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

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

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

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of May 19 were -3.0% below the seasonal 5-year average, (2) gasoline inventories were -7.8% below the seasonal 5-year average, and (3) distillate inventories were -17.2% below the 5-year seasonal average.  U.S. crude oil production in the week ended May 19 rose +0.8% w/w to 12.3 million bpd, only 0.8 million bpd (-6.1%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended May 26 fell by -5 to a 1-year low of 570 rigs, falling further below the 2-1/2 year high of 627 rigs posted on December 2.  U.S. active oil rigs have more than tripled from the 17-year low of 172 rigs seen in Aug 2020, signaling an increase in U.S. crude oil production capacity.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

JUNE 01 AT 10:00 AM

Tell Us How We’re Doing On Google Business

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

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

“Celebrating 30-years of Service Excellence”

www.FuelManagerServices.com

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