Tonight Fueling Strategy: Please “FILL AS NEEDED TONIGHT”~ Be Safe Today!
Tuesday Fueling Strategy: Keep Your Tanks Topped Today, Tonight Before 23:00 CST have tanks completely Full of Fuel – Wednesday look for diesel to go UP $
Fueling Strategy: Please “keep Your Tanks Topped Today, Tonight Before 23:00 CST have completely Full of Fuel” Prices are DOWN today 4 Cents and will go UP 1.5 Cents Thursday ~ Be Safe Today!
Fueling Strategy: Please “PARTIAL FILL ONLY OR BETTER YET WAIT TO FUEL UNTIL WEDNESDAY AM”, Wednesday prices will DROP 4 Cents ~ Be Safe Today!
NYEX Crude $ 68.04 DN $2.3400
NYMEX ULSD $2.1976 DN $0.0413
NYMEX Gas $1.9570 DN $0.0555
NEWS
The December WTI trading session settled at 68.04 -2.34, had a high of 70.56, a low of 67.92. Cash price is at 70.39 (-2.00), while open interest for CLZ24 is at 279,129. CLZ settled above its 5 day (70.92), above its 20 day (70.06), above its 50 day (69.92), below its 100 day (72.74) and below its 200 day (74.24) moving-averages. The COT report (Futures and Options Summary) as of 10/29 showed commercials with a net short position of -211,631 (a decrease in short positions by 18,244 compared to the prior report) to non-commercials who are net long +182,643 (a decrease in long positions by 21,347 compared to the prior report).
The Standing Committee of China’s National People’s Congress held policy meetings last week. China did end up passing the issuance of 1.4 trillion yuan in local debt, which was expected, but did not announce any other major stimulus packages, which in my view was not enough to shrug off bearish economic China sentiment for traders. Weekend data out of China showed China’s Consumer-Price Index decreased from the previous month, coming in at 0.3% for October, which was below economists forecast of 0.4%, while China’s Producer-Price Index declined for the 25th straight month and had a 2.9% fall from the previous month. This was the worst consumer price growth for China in four months. Saudi Arabia also lowered their crude delivery forecast for China to 36.5 million barrels for December, the second consecutive month of lower shipments and roughly ~10 million less barrels than were shipped in October. Reuters reported this morning that U.S. crude exports rebounded in China in the month of October to 130,000 barrels per day, citing tracking data from Kpler, exports in August were previously near 4 year lows. On Friday China will put out fresh industrial output numbers for October. The Shanghai CSI 300 Index closed higher by +0.66%.
Fueling Strategy: Please “PARTIAL FILL ONLY OR BETTER YET WAIT TO FUEL UNTIL SUNDAY AM”, Sunday prices will DROP5 Cents ~ Be Safe Today!
NYEX Crude $ 70.38 DN $1.9800
NYMEX ULSD $2.2389 DN $0.0475
NYMEX Gas $2.0125 DN $0.0411
NEWS
December WTI crude oil Friday closed down -1.98, and December RBOB gasoline closed down -0.0411. Crude oil and gasoline prices Friday were under pressure after Chinese stimulus measures were seen as underwhelming, which may keep Chinese economic growth and energy demand subdued. Also, Friday’s dollar strength weighed on energy prices. In addition, crude oil prices are being undercut by speculation that President-elect Trump’s policies will increase US crude production and that new tariffs may slow China’s economy.
Friday’s Chinese stimulus announcement fell short of hopes for more measures to stimulate consumer demand in China and revive its slumping housing market. The Chinese government announced a 10-trillion yuan ($1.4 trillion) multi-year program to refinance local debt, disappointing analysts looking for more steps to contend with China’s slowing economy. Friday’s stronger-than-expected global economic news supported energy demand and crude prices. The University of Michigan US Nov consumer sentiment index rose +2.5 to a 7-month high of 73.0, stronger than expectations of 71.0. Also, the Japan Sep leading index CI rose +2.5 to a 4-month high of 109.4, stronger than expectations of 109.0. Crude demand in China has weakened and is a bearish factor for oil prices. According to Chinese customs data, China Oct crude imports fell -2% m/m and -9% y/y to 44.7 MMT, and crude imports year-to-date are down -3.4% y/y at 457.074 MMT. China is the world’s second-largest crude consumer.
Crude has support from Sunday’s news that OPEC+ will delay its 180,000 bpd crude production increase by a month, the second straight month that the supply increase has been postponed. OPEC’s Oct crude production rose +370,000 bpd to 26.9 million bpd.Bellicose comments from Iran on Monday were bullish for crude when Iranian supreme leader Ayatollah Ali Khamenei warned of a “crushing response” to Israel’s recent air strikes on Iran. Also, a report by the Wall Street Journal Sunday said that Iran is planning a counterattack on Israel involving more powerful warheads and other weapons. An escalation of hostilities between Iran and Israel could widen the conflict in the Middle East and disrupt the region’s crude supplies. A decline in crude oil held worldwide on tankers is bullish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -8.2% w/w to 51.44 million bbl in the week ended November 1.
A decline in Russian crude exports is bullish for crude. Weekly vessel-tracking data from Bloomberg showed Russian crude exports fell by -530,000 bpd to 3.02 million bpd in the week to November 3, a 6-week low. Separately, Russia’s Energy Ministry reported on October 23 that Russia’s Sep crude production was 8.97 million bpd, down -13,000 bpd from Aug and just below the 8.98 million bpd output target it agreed to with OPEC+.
Wednesday’s EIA report showed that (1) US crude oil inventories as of November 1 were -4.6% below the seasonal 5-year average, (2) gasoline inventories were -2.4% below the seasonal 5-year average, and (3) distillate inventories were -5.9% below the 5-year seasonal average. US crude oil production in the week ending November 1 was unchanged w/w at a record 13.5 million bpd.
Baker Hughes reported Friday that active US oil rigs in the week ending November 8 were unchanged at 479 rigs, just above the 2-1/2 year low of 477 rigs posted in the week ending July 19. The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.
Fueling Strategy: Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT”, Make sure you’re completely full of fuel by 23:00 CST tonight! – Today (FRIDAY) prices are down 3.5 Cents but will goUp 2 Cents Saturday AM Partial fill only 35 gallons or less, then Look for prices to drop from 3 to 5 Cents Sunday~ Be Safe Today!
Fueling Strategy: Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT”, Make sure you’re completely full of fuel by 23:00 CST tonight! – Today prices are down 3.5 Cents but will goUp 2 Cents Saturday AM~ Be Safe Today!
First, let me explain the company’s current fuel discount program, and why following a “fueling strategy” will help you manage your rolling inventory (your tank levels) and save you the most money per fill up.
Most companies have a fuel discount program which can be a retail less discount or like yours is a “wholesale cost plus or minus” discount.
What is the best fuel discount?
From a management/buyer’s standpoint what you want is the ability to make the “absolute best buying decision proactively” and to do this to do this there are several factors that separate the random buyer from the informed buyer.
The wholesale cost based discount is the best net cost discount on today’s market. Why? The wholesale markets nationwide are predictable in terms of UP/DOWN movements 365 days.
Knowing when prices will rise, or fall puts you in a great position to buy fuel with great confidence knowing you WILL save money on every purchase. The basis of the Fueling Strategy delivers this information to you daily.
The Historic Results: Potential Savings of $.035 CPG to upwards of $.12 CPG if followed daily.
Strategy: “Fuel as Needed Today/Tonight”
Means: No Change in Wholesale Prices Tomorrow
Strategy: “Keep Your Tanks Topped Today/Tonight”
Means: Wholesale Prices Will Go UP Tomorrow
Strategy: “Partial Fill or Better Yet Don’t Fuel Today/Tonight”
Means: Wholesale Prices Will Go DOWN Tomorrow
If you have any questions, please feel free to call Loren R Bailey at 479-790-5581
