Fueling Strategy: Please continue keeping your tanks full of fuel tonight, Friday look for prices to jump up 18.5 cents, Gas will drop 8 cents ~ Be Safe

NMEX Crude     $ 76.11 DN $1.1700

NYMEX ULSD    $3.2834 UP $0.0066

NYMEX Gas      $2.1668 DN $0.0776

NEWS

Oil snapped a three-day rally. Commodities from oil to copper were under pressure as fears of a global economic slowdown and waning demand mounted. The dollar climbed the most since September as investors sought haven assets. 

“The pullback in the market today — we aren’t surprised by it,” Nadia Lovell, UBS Global Wealth Management senior US equity strategist, told Bloomberg Television on Thursday. “This is a market that has traded on the hope that the Fed will not do what they say they will do. Yesterday they sent a clearly different message.”

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

www.owneroperatoradvisoryservice.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 continue keeping your tanks full of fuel today/tonight, Thursday prices will jump UP another 13 cents THEN Friday look for prices to jump up again 18.5 cents ~ Be Safe

NMEX Crude     $ 77.28 UP $1.8900

NYMEX ULSD    $3.2768 UP $0.1846

NYMEX Gas      $2.2425 UP $0.0816

NEWS

Oil rallied for a third day to the highest level in more than a week, undaunted by the Federal Reserve’s determination to fight inflation with a sustained policy of rate hikes.

The jump Wednesday comes after the International Energy Agency said 2023 oil prices may rise as sanctions squeeze Russian supplies and demand beats earlier forecasts.

Prices shed some of their gains after the US Federal Reserve raised rates by 50 basis-points. Broader markets shied away from risky-assets after the central bank reinterate that inflation in the US remains elevated and higher rate hikes in the future were not ruled out.

Still, crude is on track for its first back-to-back quarterly decline since 2019 as concerns about a global economic slowdown persist. Goldman Sachs Group Inc. was among those to trim their outlooks for next year.

Wednesday’s rally defied some bearish headlines. Among them: US crude stockpiles rose more than 10 million barrels last week, the most since March 2021, according to the Energy Information Administration. The inventory build came after TC Energy shut its massive Keystone oil pipeline due to a leak. News that the company was planning a partial restart of the line Wednesday, followed by full resumption Dec. 20, has weighed on prices at times.

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

www.owneroperatoradvisoryservice.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 have your tanks completely full of fuel before 23:00 CST, Wednesday diesel prices will jump UP 17.5 cents and Gasoline will go UP 8 Cents  ~ Be Safe

NMEX Crude     $ 75.39 UP $2.2200

NYMEX ULSD    $3.0922 UP $0.1237

NYMEX Gas      $2.1609 UP $0.0799

NEWS

The 622,000 b/d Keystone pipeline running from Alberta, Canada into the US Midwest has been halted for almost a week already after a 14,000-barrel oil spill in Kansas. 

* Market differentials of Canada’s heavy Western Canadian Select have fallen some $5 per barrel since the outage, currently trading at a -$30/barrel discount to WTI as the off-take pressure grows on Canadian producers. 

* The Keystone pipeline has leaked almost 26,000 barrels of oil since 2010, the most of any other pipeline in the given period.

* Keystone’s extension into the Marketlink pipeline system towards Texas has allowed Canadian producers of heavy crude to export their barrels from Gulf Coast terminals, with outflows reaching some 300,000 b/d recently, up until the oil spill. 

Tuesday, December 13, 2022

The US consumer price index increased by 7.1% year-on-year in November, a better-than-expected result that breathed some life into the market. Yet even with Brent testing the $80 per barrel threshold, news of China postponing its closed-door Central Economic Conference (where some had expected an announcement regarding the easing of its Covid policy) and of clinics swamped by long queues of people exhibiting coronavirus symptoms doesn’t bode well for a quick demand recovery.

China Wants More Oil Trade in Yuan. China’s President Xi Jinping has called on Arab leaders to buy oil and gas in Chinese yuan, calling their countries natural partners, as last week’s China-Arab League meetings overshadowed US President Biden’s visit five months ago.

IEA Warns of Gas Shortage in Europe. The International Energy Agency has warned that the EU could face a gas shortage of up to 30 bcm in 2023 if Russia cuts its remaining pipeline deliveries and Chinese demand rebounds from lockdown-induced lows.

Are We Nearing a Fusion Energy Breakthrough? The US Department of Energy is to announce Tuesday that scientists from the Lawrence Livermore National Laboratory in California have achieved a net energy gain from fusion energy for the first time in history.

Chinese Shipyards Enjoy LNG Bonanza. With the order book of South Korean shipyards swamped by Qatar’s expansion plans, Chinese docks have ratcheted up the market share of new LNG orders massively as three shipyards won nearly 30% of this year’s record 163 orders for new LNG carriers.

IMF Sees Iraq with Lower Oil Dependency. The International Monetary Fund (IMF) has called on Iraqi authorities to use this year’s windfall profits towards economic diversification, with the country’s GDP expected to grow 8% in 2022 and the fiscal breakeven level dropping to $66 per barrel.

France’s Nuclear Generation Saves the Day. Electricity generation from France’s nuclear reactors surpassed the 40 GW mark for the first time since March 2022 as the country confronted the Europe-wide cold snap, with prolonged corrosion repairs gradually coming to an end.

EU Members Seek to Soften Methane Rules. Only a few weeks after the COP27 summit, it was reported that several EU countries are trying to weaken the bloc’s pledge to cut methane emissions in the oil and gas sector, with Romania and Hungary claiming it would be too difficult to end routine gas flaring immediately.

Investors Still Flee Oil Futures. For the fourth consecutive week, investors have been reducing their positions in key oil futures and options contracts, selling the equivalent of 30 million barrels in the week ending December 6, bringing the total sell-off tally to 221 million barrels over the four past weeks.

WTO Finds US Steel Duties Violate Trade Rules. A World Trade Organization panel found that the US import duties of 25% on steel and 10% aluminum established in March 2018 by then-President Trump are inconsistent with international trade obligations and recommended scrapping them.

Saudi Arabia Doubles Down on Giant Gas Field. Saudi Aramco (TADAWUL:2222) is reportedly seeking equity investors that would help fund its 110 billion drive to develop the unconventional resources of the giant 200 TCf Jafurah gas field, expected to become a blue hydrogen feed by 2030.

UK Puts Coal Plants on Alert. The UK National Grid has asked two contingency coal-fired power plants to be ready to send more electricity to the grid if needed as the Europe-wide cold snap led to an increase in demand amidst lower wind generation rates.

Argentina to Connect Vaca Muerta to Brazil. Argentina has secured financing of $689 million from the Brazilian state development bank BNDES to build a new gas pipeline that would supply natural gas from the vast Vaca Muerta shale play northwards to Brazil.

Lithium Toxicity Issue Saps Europe Production Plans. As the European Commission’s scientific arm recommended that Brussels classify lithium as toxic, stymieing potential production across the continent, the EU’s executive arm has pushed back the decision on the issue into 2023.

(OilPriceNews)

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

www.owneroperatoradvisoryservice.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, Tuesday PLEASE keep your tanks topped and before 23:00 CST have tanks completely full of fuel due to Wednesday prices will go UP 17 to 18 cents~Be Safe

NMEX Crude     $ 73.17 UP $2.1500

NYMEX ULSD    $2.9685 UP $0.1748

NYMEX Gas      $2.0826 UP $0.0265

NEWS

Traders swooped in to buy oil at the lowest price this year, as markets digested the fact that a key North American crude pipeline remains shut with no timeline for reopening.

West Texas Intermediate rose 3% to settle above $73 a barrel. Oil rallied Monday after prices plunged 11% last week to settle at the lowest price in 2022. Last week, crude closed below its nine-day relative strength index for three days, breaching a technical indicator that suggests oil is oversold and presents a good buying opportunity for some traders.

Meanwhile, TC Energy Corp. is continuing recovery efforts at its shuttered Keystone pipeline, that links fields in Canada to refiners on the US Gulf Coast. A date for a restart hasn’t yet been set, according to a statement on Sunday. Refined products also recovered this morning, with gasoline futures rising 1.2% after touching a new low for the year overnight.

Crude is on track for its first back-to-back quarterly decline since mid-2019 as the demand outlook sours and thin liquidity exacerbates price swings into the year-end. December was expected to be a rocky month with sanctions on Russian oil shipments taking effect, but the weakening demand outlook — led by risks to global growth — has weighed on prices.

As the oil market has softened in recent days, both Brent and WTI have at times traded in contango. The bearish market structure indicates plentiful crude supply over the short term. Russia’s ability to export crude oil without as many disruptions as traders anticipated has left markets softer, Francisco Blanch, head of commodity and derivatives research at Bank of America said in a Bloomberg Television interview.

“We have a bit of a soft patch right here; contango is happening but it is very front-loaded,” said Blanch. “You have a modest surplus you need to adjust for, and that’s exactly what the market has done.”

Following the imposition of the price cap on Russian crude and related curbs, a backlog of tankers waiting to haul oil through Turkey’s vital shipping straits built up amid a dispute over insurance cover. That now appears to be clearing, with a port agent tally on Sunday showing 19 tankers waiting to pass through the Bosphorus and Dardanelles straits, down from a total of 27 on Saturday.

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

www.owneroperatoradvisoryservice.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 have your tanks completely full of fuel tonight before 23:00 CST, Saturday prices will go UP 10 cents but Sunday we’ll an 8 to 9 cents correct DOWN ~ Be Safe

NMEX Crude     $ 71.02 DN $.4400

NYMEX ULSD    $2.7937 DN $.0861

NYMEX Gas      $2.0561 UP $.0070

NEWS

Oil posted the biggest weekly loss since April as low liquidity fueled big price swings and as restarts for key pipelines alleviated supply concerns.

West Texas Intermediate briefly fell below $71 a barrel to the lowest price in a year. The US benchmark — along with Brent crude — has given up all of its gains for the year and slumped 11% this week. Thin trading has exacerbated price fluctuations, with volatility rising again Friday on stronger-than-expected US inflation data.

TC Energy Corp. is planning to restart one leg of the shuttered Keystone oil pipeline beginning Saturday, following a 14,000-barrel crude spill, according to people familiar with the matter. Shell Plc has restored normal operations to a 20-inch segment of the Zydeco crude system after running it at reduced rates since November. Earlier in the week, there were some concerns the Keystone disruptions would put a dent into crude stockpiles in Cushing, Oklahoma, the nation’s largest storage hub.

“Crude can’t find a bid as Keystone looks to come back online in short order,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “For now, every headline is being seen through a bearish lens and buyers are not motivated get involved until they see demand signals improving.”

Friday’s WTI decline comes on the back of a small rally earlier in the day triggered by Russia President Vladimir Putin saying the country may cut production in response to the G-7 cap on the price of its crude.

“Commentary from Russia about cutting production is perceived as tactic to talk up price as opposed to having a meaningful impact on supply,” Babin said.

Crude is now on track for its first back-to-back quarterly decline since mid-2019 on a souring economic outlook as central banks tighten monetary policy, though Treasury Secretary Janet Yellen still sees the US avoiding a recession. Traders are also assessing the fallout from a price cap on Russian oil, which has led to a jam of tankers in Turkish waters due to a standoff over insurance.

The market continues to signal ample near-term supply, with the prompt spread — the difference between the two nearest contracts — for both WTI and Brent holding in contango. The global benchmark was about 47 cents a barrel in contango, compared with $1.44 in backwardation a month earlier.

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

www.owneroperatoradvisoryservice.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 tonight due to Friday’s 13 cent drop in prices ~ Be Safe

NMEX Crude     $  71.46 UP $.5500

NYMEX ULSD    $2.8798 UP $.0993

NYMEX Gas      $2.0491 DN $.0281

NEWS

The shutdown of a key North American pipeline after an oil spill in Kansas roiled the flow of crude supplies across the US at a time when a fragile supply situation has rocked markets with volatility.

TC Energy Corp declared force majeure on its Keystone oil pipeline system after a spill into a Kansas creek, according to people familiar with the matter. The contract clause is used when a company encounters an unforeseen “act of God” and typically indicates that supply agreements are about to go unfulfilled. The massive crude pipeline, which can carry more than 600,000 barrels a day, was shuttered Wednesday night.

Keystone is a major conduit linking oil fields in Canada to refiners in the US Gulf Coast, and any prolonged disruption will almost certainly put a dent into US crude inventories. Already stockpiles in Cushing, Oklahoma, the nation’s largest storage hub, are at their lowest since July — and at multi-year lows seasonally. Availability has been tight after refineries ramped up processing in response to strong gasoline demand.

West Texas Intermediate oil futures briefly jumped more than 4%, topping $75 per barrel, before reversing the gains. Physical crude prices on the Gulf Coast also briefly surged on expectations of tighter supplies following the outage. By the end of the trading day on Thursday, prices were back in negative territory as traders bet that at least one segment of the line would restart soon.

The impact to consumers could be limited. A shorter disruption could probably be absorbed by the market after inventories of US gasoline have recently been built back up. Still, a protracted, severe outage for the pipeline would pull gasoline prices higher just as consumers were starting to feel some relief from surging fuel costs that had become a major domestic political issue.

The Keystone system begins in western Canada and runs to Nebraska, where it splits. One branch heads east to Illinois and the other runs south through Oklahoma and onward to America’s refining hub on the Texas Gulf Coast. 

The spill follows several other leaks to hit Keystone in recent years. The system was shut in October 2019 after it spilled thousands of barrels of oil in North Dakota.

Traders said they expect the latest outage to last upwards of a week since it affects a waterway, which can potentially complicate cleanup efforts. Calgary-based TC didn’t immediately provide an estimate of how much crude leaked or a timeline for a restart.

Investigation ‘Ongoing’ 

The Nebraska Department of Environment and Energy confirmed the incident occurred in Kansas. The Pipeline and Hazardous Materials Safety Administration, a federal regulator, said it deployed personnel to the site of an oil leak near Washington, Kansas, on Wednesday.

“PHMSA’s investigation of the cause of the leak is ongoing,” the agency said.

The impact on US refineries that rely on crude from Keystone will depend on how long the full line or each segment is down. If the segment feeding the Midwest north of where the spill occurred comes online soon, there may not be much impact for refiners in the region.

Energy Aspects Ltd’s head of North American crude, Jenna Delaney, said the main concern is for the refineries near Cushing and those in Kansas that processed as much as 30% of the Canadian heavy sour crude this year from the Cushing storage hub.

“These refineries can’t pull any other heavy-sours aside from Canadian” whereas refiners along the US Gulf Coast can find other suppliers, Delaney said.

It’s likely the spread between Western Canadian Select (WCS), a heavy crude, and the benchmark West Texas Intermediate priced in Houston will “compress due to this outage,” Delaney said, adding that the differential could “easily” narrow “if this outage is going to be extended.”

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

www.owneroperatoradvisoryservice.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 this morning, tonight partial fill ONLY due to prices will fall another 8.5 cents Thursday then Friday look for a 13 cent drop in prices.  ~ BE Safe

NMEX Crude     $  72.01 DN $2.2400

NYMEX ULSD    $2.7805 DN $0.1350

NYMEX Gas      $2.0772 DN $0.0719

NEWS

It doesn’t take much to get oil prices moving lower these days, thanks to shrinking liquidity that’s sapped the life out of the market.

Both benchmarks have now erased all their gains for 2022. Prices on Wednesday headed for a fourth straight loss, with West Texas Intermediate trading near $72 a barrel and Brent dropping to the lowest in about a year. The market took another turn lower on signs of easing constraints for US fuel supplies and as risk-off sentiment gained momentum.

“There is literally no risk appetite to buy the dip in crude right now,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “This is just snowballing into outsize moves.”

With many traders poised to close out big positions as 2022 wraps up, Babin said that the the big question now is: Can anything “step in front of crude into last trading days of the year” to stem the losses?

Crude has so far stumbled into the final month of the year, with the US benchmark heading for the first back-to-back quarterly drop since mid-2019 as central banks tighten monetary policy. Concerns about the global growth outlook, alongside a soft physical market and falling liquidity have weighed on prices. Then on Wednesday, the Energy Information Administration reported that distillate and gasoline inventories had climbed, indicating weaker demand.

The market’s latest leg down came at a complex moment, with traders assessing the fall-out from Group of Seven curbs on Russian oil, including a price cap that’s meant to punish Moscow for the war in Ukraine.

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

www.owneroperatoradvisoryservice.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 or better yet don’t buy fuel today due to Wednesday prices will drop 17 cents ~ Be Safe

NMEX Crude     $  74.25 DN $2.6800

NYMEX ULSD    $2.9155 DN $0.0843

NYMEX Gas      $2.1491 DN $0.0528

NEWS

The US raised its forecast for oil production next year, reversing course after five straight months of cuts that stoked concern about a slowdown in output from shale fields.

Production is poised to average 12.34 million a barrels a day next year, topping the record 12.315 million barrels a day set in 2019, according to a monthly report from the Energy Information Administration. That’s an about-face for the government agency following a sharp downward revision in November. The estimate for this year’s output also got a boost.

The forecast could help quell fears that that oil production from American shale fields, one of just a few sources of output growth globally, is decelerating even as crude prices remain well above drillers’ costs to break even. Though concerns about economic growth have kept downward pressure on the market in recent weeks, a slowdown in shale production would add to the risk of tight supplies after Russia’s invasion of Ukraine. 

The US estimate was raised as oil rigs rise, climbing by about 30% so far this year, according to Baker Hughes Co. data. Shale producers have expanded drilling at cautious pace to focus on capital discipline and shareholder returns, much to the chagrin of President Joe Biden, who has called on explorers to pump more oil. 

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

www.owneroperatoradvisoryservice.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     $ 76.93 DN $3.0500

NYMEX ULSD    $2.9998 DN $0.1687

NYMEX Gas      $2.2019 DN $0.0785

NEWS

Saudi Arabia has cut the price of the crude it will sell to Asia in January to a 10-month low versus the regional benchmarks which have weakened in recent weeks amid signs of lackluster demand in the world’s most important oil-importing market.

Saudi Aramco, the state-owned oil giant, cut on Monday the price of its flagship Arab Light crude for sale in January in Asia by $2.20 per barrel, to a premium of $3.25 a barrel to the regional Oman/Dubai benchmark, off which Middle Eastern term supply to Asia is priced.

The cut, to the lowest premium over Oman/Dubai in 10 months, was largely in line with a Reuters survey of refiners and traders in Asia from last week.

The Saudi oil giant also cut by $1.80 per barrel the price of Arab Light to northwest Europe, which will be selling in January at a $0.10 discount to ICE Brent. The price to the U.S. remained unchanged.

The Saudi cut to prices signals uneasiness about the prospects of oil demand in the key importing region, Asia, where the lockdowns in China have been weighing on market sentiment. Moreover, recent market structures of the key benchmarks have flashed signs of weak demand and sufficient supply, despite the EU embargo on imports of Russian crude oil, which came into effect on Monday.

Saudi Aramco, which releases official selling prices (OSPs) for the following month around the fifth of each month, also typically releases the prices after the monthly OPEC+ meeting.

At the OPEC+ meeting on Sunday, the alliance decided not to change the production quotas for its members.

OPEC+ had agreed in October to cut the collective oil production target by 2 million barrel per day (bpd) beginning in November. The actual cut would be around 1 million bpd, of which Saudi Arabia, which has been trying to produce to quota, will reduce 526,000 bpd of output as of November and will have a target of 10.478 million bpd until OPEC+ decides otherwise.

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

www.owneroperatoradvisoryservice.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, Saturday prices will fall 10 cents then Sunday look for prices to continue falling 9.5 cents ~ Be Safe

NMEX Crude     $ 79.98 DN $1.2400

NYMEX ULSD    $3.1685 DN $0.0939

NYMEX Gas      $2.2804 DN $0.0616

NEWS

Oil posted its biggest weekly gain in a month, after a volatile week marked by China loosening Covid restrictions and speculation on OPEC+ output policy.

Front-month volatility jumped to 53% earlier this week, the highest since September, with crude trading in a $10 range. Speculation of OPEC+ output cuts sent crude swinging as traders tried to foretell what the cartel might decide over the weekend. Prices got a boost as China, facing extraordinary unrest, began to ease Covid-Zero policies, aiding the outlook for energy consumption.

The gyrations have become too much for many traders to stomach. Open interest for WTI stands at the lowest since 2014 and money managers have slashed bullish bets on both benchmarks for three weeks straight, to the lowest in more than two years. Analysts say the liquidity crisis will continue as positions continue to be closed out before year end.

Oil staged a sharp rebound this week after hitting its lowest level since 2021 on Monday, with demand prospects improving due to the scaling back of China’s Covid policy following protests. The rally was aided by broader market sentiment reacting optimistically to signals from Federal Reserve officials early in the week that the pace of interest-rate hikes will slow. 

However, the four-day rally came to a halt Friday after bearish headwinds reasserted themselves into the market. Faster-than-expected US employment growth figures reignited fears that the Federal Reserve will tighten further to slow down growth, while the European Union agreed to a $60 a barrel price cap on Russian oil. The move is intended to allow Russian oil to keep flowing in global markets while limiting financial gains for Putin.

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

www.owneroperatoradvisoryservice.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