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

NMEX Crude      $ 75.66 DN $1.1200

NYMEX ULSD     $2.3823 UP $0.0052

NYMEX Gas       $2.5504 UP $0.0203

NEWS

June WTI crude oil on Monday closed down -1.12 (-1.46%), and June RBOB gasoline closed up +2.03 (+0.80%).

Crude oil prices Monday settled lower.  A rally in the dollar index Monday to a 1-1/2 week high undercut energy prices.  Also, Chinese economic concerns weighed on crude prices after Monday’s news that China’s Apr manufacturing and non-manufacturing activity slowed more than expected.  However, energy prices recovered from their worst levels, and gasoline climbed into positive territory, on U.S. economic optimism after Monday’s U.S. construction spending and ISM manufacturing reports rose more than expected.

Monday’s Chinese economic news was weaker than expected and bearish for energy demand and crude prices.  The China Apr manufacturing PMI fell -2.7 to a 4-month low of 49.2, weaker than expectations of 51.4.  Also, the Apr non-manufacturing PMI fell -1.8 to 56.4, weaker than expectations of 57.0.

U.S. economic news Monday was better than expected and supportive of energy demand and crude prices.  The Apr ISM manufacturing index rose +0.8 to 46.1, stronger than expectations of 46.8.  Also, Mar construction spending rose +0.3% m/m, stronger than expectations of +0.1% m/m and the largest increase in 4 months.

Another bearish factor for crude prices is concern that tighter monetary policy from the world’s central banks will slow economic growth and energy demand.  The Fed is expected to raise interest rates by 25 bp at Wednesday’s FOMC meeting, and the ECB is expected to raise rates by 25 bp at Thursday’s policy meeting.

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 -7.2% w/w to 88.87 million bbl in the week ended April 28.

Strength in energy demand in India, the world’s third largest crude consumer, is bullish for prices after India’s Ministry of Petroleum and Natural Gas reported India’s Mar crude processing rose +3.1% y/y to 23 MMT.  Also, India’s Mar crude imports rose +7.9% y/y to 20.5 MMT.

Signs of stronger Chinese fuel demand are positive for crude prices.  China’s CCTV reported that about 9 million passenger trips would be made during the week-long Golden Week holidays in China that started April 29, up +30% from 6.9 million trips in 2019 before the pandemic.

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 400,000 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 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 April 21 were -0.5% below the seasonal 5-year average, (2) gasoline inventories were -7.2% below the seasonal 5-year average, and (3) distillate inventories were -12.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended April 21 fell -0.8% w/w to 12.2 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 April 28 were unchanged at 591 rigs, moderately 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

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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 Adam

Fueling Strategy: Please fuel as needed tonight, prices are down 8 cents and will go down another 2 cents Saturday but Sunday look for prices to go back UP 2.5 cents~Be Safe

NMEX Crude      $ 76.78 UP $2.0200

NYMEX ULSD    $2.3787 UP $0.0245

NYMEX Gas        $2.5702 UP $0.0374

NEWS

June WTI crude oil on Friday closed up +2.02 (+2.70%), and June RBOB gasoline closed up +3.74.

Crude oil and gasoline prices Friday posted moderate gains on tight global supplies and strength in energy demand.  U.S. gasoline demand in the week ended April 21 rose +11.6% w/w to 9.511 million bpd, the highest in 16 months.  Also, India’s Mar crude imports rose +7.9% y/y to 20.5 MMT.  Friday’s rally in the S&P 500 to a 1-1/2 week high shows confidence in the economic outlook that is bullish for energy demand and crude prices.

Friday’s global economic news was mixed for crude prices.  On the positive side, U.S. Mar personal spending was unchanged m/m, stronger than expectations of -0.1% m/m.  Also, the U.S. MNI Apr Chicago PMI unexpectedly rose +4.8 to an 8-month high of 48.6, stronger than expectations of a decline to 43.6.  In addition, Japan Mar retail sales rose +0.6% m/m, stronger than expectations of +0.3% m/m.  On the negative side, Eurozone Q1 GDP rose +0.1% q/q and +1.3% y/y, slightly weaker than expectations of +0.2% m/m and +1.4% y/y.  Also,

Strength in energy demand in India, the world’s third largest crude consumer, is bullish for prices after India’s Ministry of Petroleum and Natural Gas reported India’s Mar crude processing rose +3.1% y/y to 23 MMT.  Also, India’s Mar crude imports rose +7.9% y/y to 20.5 MMT.

Signs of stronger Chinese fuel demand are positive for crude prices.  China’s CCTV reported that about 9 million passenger trips would be made during the week-long Golden Week holidays in China that starts April 29, up +30% from 6.9 million trips in 2019 before the pandemic.

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% w/w to 98.69 million bbl in the week ended April 21.

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 400,000 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 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.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of April 21 were -0.5% below the seasonal 5-year average, (2) gasoline inventories were -7.2% below the seasonal 5-year average, and (3) distillate inventories were -12.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended April 21 fell -0.8% w/w to 12.2 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 April 28 were unchanged at 591 rigs, moderately 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

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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 or better yet do not fuel until after midnight CST, Friday you’ll see another 8 cents drop then Saturday almost a 2 cent drop~Be Safe

NMEX Crude     $ 74.76 UP $.4600

NYMEX ULSD    $2.3542 DN $.0188

NYMEX Gas      $2.5328 DN $.0166

NEWS

Oil producer group OPEC on Thursday lashed out at the International Energy Agency, saying the world’s leading energy authority should be “very careful” about undermining industry investments. OPEC Secretary General Haitham al-Ghais said finger-pointing and misrepresenting the actions of OPEC and OPEC+ was “counterproductive.” He added that the influential group of 23 oil-exporting exporting nations was not targeting oil prices, but instead focusing on market fundamentals. OPEC said that its comments came in response to fresh criticism from the IEA, without providing further details.

In a Bloomberg TV interview on Wednesday, IEA Executive Director Fatih Birol used similar language in warning OPEC about boosting oil prices. Birol said that the energy alliance, led by Saudi Arabia, should be “very careful” with its production policy, warning that the group’s short-term and medium-term interests appeared to be contradictory. He added that higher crude prices and upward inflationary pressures would result in a weaker global economy, with low-income nations likely to be disproportionately affected. “The IEA knows very well that there are a confluence of factors that impact markets. The knock-on effects of COVID-19, monetary policies, stock movements, algorithm trading, commodity trading advisors and SPR releases (coordinated or uncoordinated), geopolitics, to name a few,” Al-Ghais said.

Blaming oil for higher inflation was “erroneous and technically incorrect as there are many other factors causing inflation,” he added. Earlier this month, the Paris-based energy agency said surprise oil output cuts from OPEC+ risked exacerbating a projected supply deficit and could scupper an economic recovery. Several OPEC+ members announced on April 2 that they were set to tighten global production by an additional 1.16 million barrels per day until the end of the year. The decision, which the White House criticized, was said to have been made as part of an independent initiative un-linked to broader OPEC+ policy. The cuts add to Russia’s existing plans to trim 500,000 barrels per day of its production from March until at least the end of the year. It means the combined voluntary cuts of OPEC+ members will be in excess of 1.6 million barrels per day.

“Other energy markets have been far more volatile,” al-Ghais said, “with oil markets less so, mainly due to the stabilizing role of OPEC and the OPEC+ group.” “If anything will lead to future volatility” he added, “it is the IEA’s repeated calls to stop investing in oil, knowing that all data-driven outlooks envisage the need for more of this precious commodity to fuel global economic growth and prosperity in the decades to come, especially in the developing world.”

The relationship between OPEC and the IEA has been increasingly fraught in recent years, with Birol repeatedly criticizing the pace at which the producers’ alliance increased its output rates, as it unwound the drastic production cuts it implemented in the wake of the Covid-19 pandemic. The IEA’s condemnations aligned with views held by some consumer nations — most vocally the U.S. — that stressed the strain of high energy prices on consumer households. The IEA had served as one of the so-called secondary sources whose production data the OPEC+ group used to benchmark the internal compliance rate of its members with their respective output obligations. OPEC removed the IEA as a secondary source in March last year, with OPEC+ delegates at the time citing concerns over the accuracy of IEA production estimates.

In a February interview with Energy Aspects, Saudi Arabia oil minister and OPEC+ chair, Prince Abdulaziz bin Salman, faulted the IEA’s initial predictions of a 3 million barrels per day loss of Russian crude and oil products for a U.S. decision to release volumes from its Strategic Petroleum Reserve. “Fairly and squarely, the IEA was responsible for it. Because of the, you know, screaming and scaring that they have done, on how much Russia will lose in terms of its production,” he said. OPEC and the IEA have also diverged in their approach to global decarbonization. The IEA has repeatedly said the pathway to net-zero emissions requires massive declines in the use of oil, gas and coal and warned in a landmark report in 2021 that there is no place for new fossil fuel projects if the world is to stave off the worst of what the climate crisis has in store. The burning of fossil fuels is the chief driver of the climate emergency.

By contrast, OPEC+ ministers and officials have repeatedly championed a strategy of dual investment in hydrocarbon and renewable projects, to avoid energy shortages while green resources are insufficient to fully meet consumer demand worldwide.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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: Due to prices UP 4.5 cents, Please “partial fill only” today/tonight, Thursday prices will drop 8 cents~Be Safe

NMEX Crude     $ 74.30 DN $2.7700

NYMEX ULSD    $2.3730 DN $0.0781

NYMEX Gas      $2.5494 DN $0.0392

NEWS

The key industrial fuel, which is used to power machines as well as trucks, began to dip during a warmer-than-expected winter, and the slowdown has been exacerbated by diminishing factory output and weaker demand for on-hire trucks, according to the Wall Street Journal.

Wholesale diesel prices in New York Harbor tumbled to $2.65 a gallon from $5.34 The Conference Board’s Leading Economic Index declined further in March, suggesting that a recession will hit in the middle of this year. At the same time, the most recent reading on the New York Fed’s Recession Probabilities Model puts the odds of a downturn at 57.7%, the highest mark since 1982.

Last May, per the Journal. Benchmark diesel futures, meanwhile, have plunged nearly 25% in 2023 to $2.53 a gallon, and domestic demand is down 8.4% since the same time last year. Meanwhile, recent indicators show a steep declines in freight. The American Trucking Association’s for-hire contract truck tonnage index dropped to 95.8 in March from 101.3 the month prior, hitting the lowest level since August 2021.

And in an earnings call last week, JB Hunt executives sounded the alarm on a “freight recession” as the shipping company missed earnings views and reported across-the-board drops in volumes that sent revenue per truckload down by 17%. Executives had previously forecasted a rebound in industrial activity by the second half of 2023, but in the call, they said a recovery looks less certain due to the broader economic slowdown. “It’s just a question of when and what position will we be in when our customers start ringing our phone again in ways that they have in the past,” JB Hunt CEO John Roberts said.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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 jump UP 4.5 cents then Thursday look for an 8 cent drop~Be Safe

NMEX Crude     $ 77.07 DN $1.6900

NYMEX ULSD    $2.4511 DN $0.0799

NYMEX Gas      $2.5886 DN $0.0432

NEWS

June WTI crude oil this morning closed down -1.69 (-2.20%), and June RBOB gasoline closed down -4.32 (-1.99%).

Crude oil and gasoline prices this morning were sharply lower, with crude falling to a 3-week low.  Dollar strength today is pressuring energy prices.  Also, concerns that a slowdown in the global economy will curb energy demand are weighing on crude prices.  Crude prices extended their losses after U.S. Apr consumer confidence fell more than expected to a 9-month low.

Today’s U.S. economic news was mixed for crude prices.  On the bearish side, the Conference Board U.S. Apr consumer confidence index fell -2.7 to a 9-month low of 101.3, weaker than expectations of 104.0.  Also, the Apr Richmond Fed manufacturing survey fell -5 to -10, weaker than expectations of -8.  Conversely, Mar new home sales unexpectedly rose +9.6% m/m to a 1-year high of 683,000, stronger than expectations of a decline to 632,000.

Signs of stronger Chinese fuel demand are positive for crude prices.  China’s CCTV reported that about 9 million passenger trips would be made during the week-long Golden Week holidays in China that starts April 29, up +30% from 6.9 million trips in 2019 before the pandemic.

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% w/w to 98.69 million bbl in the week ended April 21.

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 400,000 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 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 April 14 were +1.6% above the seasonal 5-year average, (2) gasoline inventories were -6.3% below the seasonal 5-year average, and (3) distillate inventories were -11.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended April 14 was unchanged w/w at 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 April 21 rose by +3 rigs to 591 rigs, moderately 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

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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     $ 78.76 UP $.8900

NYMEX ULSD    $2.5310 UP $.0424

NYMEX Gas      $2.6318 UP $.0302

NEWS

June WTI crude oil on Monday closed up +0.89 (+1.14%), and June RBOB gasoline closed up +3.47 (+1.35%).

Crude oil and gasoline prices Monday recovered from early losses and closed moderately higher.  A fall in the dollar index to a 1-week low Monday was bullish for energy prices.  Also, signs of stronger Chinese fuel demand are positive for crude prices.  Crude oil Monday initially moved lower on concern a slowdown in the U.S. economy will curb energy demand after the Apr Dallas Fed manufacturing activity index unexpectedly fell to a 9-month low.

Signs of stronger Chinese fuel demand are positive for crude prices.  China’s CCTV reported that about 9 million passenger trips would be made during the week-long Golden Week holidays in China that starts April 29, up +30% from 6.9 million trips in 2019 before the pandemic.

Monday’s weaker-than-expected U.S. economic news signals a slowdown in the economy that is bearish for fuel demand.  The U.S. Apr Dallas Fed manufacturing activity index unexpectedly fell -7.7 to a 9-month low of -23.4, weaker than expectations of an increase to -12.0.

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% w/w to 98.69 million bbl in the week ended April 21.

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 400,000 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 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 U.S. crude oil inventories as of April 14 were +1.6% above the seasonal 5-year average, gasoline inventories were -6.3% below the seasonal 5-year average, and (3) distillate inventories were -11.6% below the 5-year seasonal average.  U.S. crude oil production in the week ended April 14 was unchanged w/w at 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 April 21 rose by +3 rigs to 591 rigs, moderately 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

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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 fill as needed today/tonight, Friday prices will drop 4 cents~Be Safe

NMEX Crude     $ 77.29 DN $1.8700

NYMEX ULSD    $2.4949 DN $0.0628

NYMEX Gas      $2.5864 DN $0.0591

NEWS

Oil prices slid by about $2 a barrel to their lowest level since late March on Thursday, dragged lower by fears a possible recession could dent fuel demand and after a rise in U.S. gasoline inventories. Brent crude futures settled at $81.10 a barrel, shedding $2.02, or 2.4%. West Texas Intermediate crude futures settled at $77.29 a barrel, losing $1.87, or 2.4%. Both benchmarks fell 2% on Wednesday and are at their lowest since just before a surprise OPEC+ production cut announcement. “At the end of the day, one of the big reasons why we’re sliding is fear of recession,” said Bob Yawger, executive director of energy futures at Mizuho.

The number of Americans filing new claims for unemployment benefits increased moderately last week, indicating the labor market was slowing after a year of interest rate hikes by the U.S. Federal Reserve, and fanning concerns about a slowdown in fuel demand.

Gasoline inventories jumped unexpectedly last week by 1.3 million barrels to 223.5 million barrels, the U.S. Energy Information Administration said in its report on Wednesday. Implied gasoline demand also fell 3.9% from year-ago levels to 8.5 million barrels a day. U.S. crude stockpiles, meanwhile, dropped by 4.6 million barrels, but analysts said that decline could be short-lived. “Although yesterday’s EIA crude stock draw of more than 4.5 million barrels looked supportive, all of the reduction was related to a spike in crude export activity that could easily be reversed in next week’s EIA,” said Jim Ritterbusch of consultancy Ritterbusch and Association.

Easing some concern about a rate hike-induced recession in the world’s largest oil consuming nation, economist polled by Reurters expected the Fed to end its tightening with a final 25 basis point rate rise in May. In Britain, persistent double-digit inflation has bolstered expectations of a further Bank of England rate hike.

On the supply side, oil loading from Russia’s western ports in April is likely to rise to the highest since 2019, trading and shipping sources said. Pakistan has placed its first order for discounted Russian crude under a new deal which could cover 100,000 barrels per day, the country’s petroleum minister said. Also weighing on crude prices, equity markets, which often move in tandem with oil prices, were down after disappointing results from Tesla and other companies.

 Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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 fill as needed today/tonight, Thursday prices will drop 1.5 cents~Be Safe

NMEX Crude     $ 79.16 DN $1.7000

NYMEX ULSD    $2.5577 DN $0.0422

NYMEX Gas      $2.6455 DN $0.1054

NEWS

Oil fell as the latest economic report revealed the slowdown effects of monetary tightening and pushed demand concerns to the market’s forefront.

West Texas Intermediate fell the most in a month to slip below $80 after being pressured by a rising dollar and dampened risk appetite throughout the session. An economic survey from the Federal Reserve late Wednesday showed the US economy stalled in recent weeks with hiring and inflation slowing and access to credit narrowing.

While the report likely reinforces the chances that the Federal Reserve will ease its policy of interest rate hikes, the demand implications are unsettling the crude market. A report showing that the US drew from the nation’s oil reserves failed to quell worries.

“The market is laser-focused on product demand and this report will not ease concerns that demand is fragile,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth, referring to Energy Information Administration data. “These numbers were not bad, but they were not good enough to keep traders sleeping well at night.”

Nationwide inventories declined 4.6 million barrels last week. Total demand rose “but not really where it matters,” said Emily Ashford, Executive Director of Energy Research, noting that gasoline demand fell and diesel consumption was effectively flat.

Despite the pullback, crude is still up from a 15-month low reached in mid-March following turmoil in the banking sector. A surprise announcement by OPEC+ on production cuts and curbed Iraqi flows pushed oil back into the $80-range. The producers’ group is looking to force consumers to take oil out of storage and shore up prices amid tentative demand growth.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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 partial fill only today/tonight, Wednesday prices will drop 2.5 cents~Be Safe

NMEX Crude     $ 80.86 UP $.0300

NYMEX ULSD    $2.5999 DN $.0148

NYMEX Gas      $2.7509 DN $.0231

NEWS

The final wave of the Permian Basin oil boom is expected to add the equivalent of Iran’s total output to global production. That growth, however, will look more like a trickle than a gusher — taking years to ramp up and underscoring OPEC+’s grip on the market for now.

America’s largest oil basin, covering swaths of West Texas and southeast New Mexico, will expand output by 40% until hitting its peak of 7.86 million barrels a day in 2030, according to a Bloomberg survey of four major forecasters. While that would be bigger than all OPEC nations except for Saudi Arabia, the outlook comes with a lot of caveats.

First, there’s the slow pace of expansion: There’s no huge increase expected this year or next, so the Permian won’t do much to ease the world’s current problems with energy-driven inflation. Second, producers, who enjoyed record profits last year, have little incentive to quickly pump their remaining acreage because investors have consistently rewarded discipline. And third, shortages of everything from labor to steel pipes and drilling equipment will also restrain growth if and when companies decide to boost supplies. Lastly, while President Joe Biden has recently implored the industry to keep pushing output, his agenda also includes the fight against climate change, which means the political picture could easily swing against shale.

Public companies are making the conscious choice to limit capital spending for new wells in favor of boosting returns to shareholders, said Raoul LeBlanc, vice president for North American upstream oil and gas at S&P Global. Accelerating output despite a shortage of labor and equipment would be difficult and erode profitability, he said. “The go-go days of shale growth turned a 4 million barrel-a-day system into a 12 million barrel a day system, but it lost a lot of money,” he said. “Now, they’re looking for payoff.”

Slow growth in the Permian is likely to create problems for consumers. A surprise oil-production cut from OPEC+ earlier this month jolted global economies and effectively set a floor for crude prices. It also leaves the century-old field, famous for its pancaked layers of oil-soaked rock, with a new identity after leading the world in crude growth.  “The Permian’s not dead,” said Chet Sharma, a senior associate at Enverus. “It’s kind of entering the next phase of its growth, which is much smaller compared to the shale boom era.”

The surveyed forecasters — S&P Global, Rystad Energy, Wood Mackenzie and Enverus — on average expect the Permian to add 2.4 million barrels of daily output by 2030 from 2022 levels. That’s nearly equivalent to the total amount of production from Iran, the fifth-biggest member of the Organization of Petroleum Exporting Countries and its allies.

Once the Permian is past its 2030 peak, the basin’s decline will be slow. becoming a reliable pillar of global oil markets for decades. In 2035, Rystad and S&P Global see Permian production 1 million barrels a day higher than this year’s output. With this growth, US government forecasts show American production hovering between 12.3 million and 13.3 million barrels a day — higher than Saudi Arabia’s record annual output in 2022 — all the way out to 2050.

Other US oil regions like the Eagle Ford in south Texas and the Gulf of Mexico are stable or declining. So it’s up to the Permian to drive overall US production.

“We have not seen yet peak production from Permian,” Vicki Hollub, CEO for Occidental Petroleum Corp. said April 12 during Columbia University’s Global Energy Summit in New York. “While other basins in the US may be plateauing, the Permian will continue to increase and will be able to overtime offset the declines from the other basins,” she said.

Have a Great Day,

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE

MAY 04 & 05, 2023

JUNE 15 TO JUNE 18, 2023

JULY  22 TO JULY 30, 2023

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