Fueling Strategy: Please keep your tanks topped tonight, Saturday prices will drop 3 cents then look for Sunday’s prices to drop 3 to 3.5 cents ~Be Safe

NMEX Crude     $ 82.52 UP $.3600

NYMEX ULSD    $2.6392 DN $.0336

NYMEX Gas      $2.8359 UP $.0042

NEWS

Oil rose for the fourth straight week, supported by signs of a tightening global market that have the International Energy Agency warning of higher prices ahead.

West Texas Intermediate settled above $82 a barrel, posting its longest run of weekly advances since June. Crude is hovering near five-month highs after OPEC+ surprised the market with plans to cut more than 1 million barrels of daily output. Declining US stockpiles, weaker flows from Russia and interruptions to pipeline supplies from Iraqi Kurdistan have added to the gains.

Markets are digesting a week of mixed projections for crude supply and demand. The latest OPEC+ cuts threaten to boost oil prices for consumers already facing high inflation, the IEA said in its monthly outlook on Friday. The cartel had forecast a day earlier that markets would be deeply under supplied. In contrast, the US Energy Information Administration projected supplies surpassing demand both in 2023 and 2024.

Demand from the world’s largest crude importer is supporting prices as well. Recent data show that China imported the most oil in three years last month, underpinned by record Russian flows. On Friday, People’s Bank of China Governor Yi Gang said the nation’s economy is expected to grow about 5% this year.

Key technical measures are signaling a tighter market, too. WTI’s prompt spread — the difference between its two nearest contracts —  was at 9 cents a barrel in backwardation. The bullish pattern is a stark reversal from when it was trading 16 cents in contango a month ago. 

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 while prices are down 1.5 cents, Friday prices will jump UP 3.5 cents~Be Safe

NMEX Crude     $ 82.16 DN $1.1000

NYMEX ULSD    $2.6728 DN $0.0303

NYMEX Gas      $2.8317 DN $0.0410

NEWS

Oil retreated after testing a key technical level, but still held near a five-month high as shrinking US inventories and surging Chinese imports added to signs of a tightening global market.

Fundamentals are supporting crude’s recent rally as inventories declined again last week at the key American storage hub in Cushing, Oklahoma, while weaker Russian oil exports and interrupted flows from Iraqi Kurdistan are reining in supplies.

The US benchmark approached its 200-day moving average after two days of solid gains, but prices failed to break through the technical level on Thursday. Crossing that mark would be a bullish indicator with the potential to spur additional buying. If the 200-day moving average holds as resistance, prices could retreat to around $76 a barrel, a level last seen before OPEC+ surprise output cuts, TACenergy said in a note.

A slew of reports projecting the market’s supply-and-demand projections released this week are also being closely watched. The Organization of Petroleum Exporting Countries’ report forecast that markets will be deeply undersupplied this year. In contrast, the US Energy Information Administration projected supplies surpassing demand both in 2023 and 2024. The week’s third major report — from the International Energy Agency — will be published Friday. 

Crude has rebounded more than 20% since hitting a 15-month low in March. In the latest sign that China’s demand is increasing, the largest crude importer shipped in the most oil in almost three years in March. Last week’s surprise production cut announcement from OPEC+ lifted prices the most in a year, punishing speculators that had bet oil prices would fall.

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

NMEX Crude     $ 83.26 UP $1.7300

NYMEX ULSD    $2.7031 UP $0.0349

NYMEX Gas      $2.8727 UP $0.0075

NEWS

May WTI crude oil on Wednesday closed up +1.73 (+2.12%), and May RBOB gasoline (closed up +0.75 (+0.26%).

Crude oil and gasoline prices Wednesday moved higher, with crude climbing to a 4-1/2 month nearest-futures high and gasoline climbing to a 5-1/2 month high.  A weaker dollar  Wednesday was bullish for energy prices.  Also, tightness in global oil supplies is supporting crude prices after OPEC+ announced a surprise cut in oil production last Monday and as 400,000 bpd of Iraqi crude oil exports remain halted.

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 last Monday 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.

The outlook for stronger Chinese crude oil demand is bullish for prices.  China National Petroleum Corp, the country’s largest refiner, predicts that oil demand in China may expand this year by +5.1% to 756 MMT as the country emerges from the pandemic.  However, oil demand in China has recently been weak.  China car sales in Jan-Feb fell -9.4% y/y, and international flights from China were at only 22% of pre-pandemic levels as of March 16.

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 +6.8% w/w to 112.83 million bbl in the week ended April 7.

Rising crude demand in India is bullish for oil prices.  India’s oil ministry reported on March 22 that India Feb crude oil imports rose +8.5% y/y to 19.1 MMT, the most in seven months.

Wednesday’s weekly EIA inventory report was mixed for energy prices.  On the bullish side, EIA distillate stockpiles fell -606,000 bbl, a larger draw than expectations of -200,000.  Also, crude supplies at Cushing, the delivery point of WTI futures, fell -409,000 bbl to a 3-month low.  On the bearish side, EIA crude inventories unexpectedly rose +597,000 bbl versus expectations of a -1.05 million bbl draw.  Also, EIA gasoline supplies fell -330,000 bbl, a smaller draw than expectations of -1.9 million bbl.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of April 7 were +2.8% above the seasonal 5-year average, (2) gasoline inventories were -6.9% 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 7 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 Thursday that active U.S. oil rigs in the week ended April 7 fell by -2 rigs to 590 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 KEEP your tanks topped tonight, Wednesday prices will go UP 2 cents but will fall $.0150 Thursday~Be Safe

NMEX Crude     $ 81.53 UP $1.7900

NYMEX ULSD    $2.6682 DN $0.0132

NYMEX Gas      $2.8652 UP $0.0573

NEWS

Oil rose above $81 a barrel, buoyed by general risk-on sentiment, as the first of a spate of supply-and-demand projections scheduled this week forecast a modest rise in US production.

Crude held its gains even after a US Energy Information Administration report Tuesday estimated supply will exceed demand in the next two years, despite the unexpected production cut by OPEC+.

The Organization of Petroleum Exporting Countries and the International Energy Agency also are scheduled to issue monthly reports later this week.

Despite the bearish government report, key market metrics are signaling renewed strength in the aftermath of OPEC+’s announced output cuts. The December-December spread — the difference between futures for the final month of this year and in 2024 — rallied to more than $5 a barrel, up from $2.53 three weeks ago.

“The oil market is going to remain tight and while China’s reopening has underwhelmed, they will do a lot better going forward and that should keep prices supported,” said Ed Moya, a senior market analyst at Oanda.

Russia’s seaborne oil exports collapsed last week, which could tighten markets further. Almost half a million barrels a day of crude supply from Iraq’s semi-autonomous Kurdistan region also remains halted, and there are signs more negotiations will be needed before those flows can resume.

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     $ 79.74 DN $.9600

NYMEX ULSD    $2.6814 UP $.0209

NYMEX Gas      $2.8054 DN $.0054

NEWS

Oil fell in a low-volume session, unable to withstand a rising US dollar while investors waited for upcoming supply constraints to hit the market.

Traders exited risk assets Monday, pausing a rally in which prices have risen roughly 20% in the last three weeks. OPEC+’s surprise decision to slash output beginning in May reignited bullish bets on prices, yet some demand indicators are flashing signs of weakness. “We’re waiting to see what’s really happening with the economy, but it is a slower recovery,” Ed Morse, global head of commodities research at Citigroup Inc., said in a Bloomberg Television interview. “It’s a services recovery. If anything, that will be an end-of-year phenomenon.”

Traders are awaiting insights this week into monthly outlooks from OPEC and the International Energy Agency as well as US inflation data and Federal Reserve minutes.  Separately, Turkey wants to negotiate payments it owes Iraq before a pipeline that exports 400,000 barrels a day is reopened, according to Turkish officials familiar with the situation. 

Russia’s Energy Ministry, meanwhile, said that the nation reduced its oil output by about 700,000 barrels a day last month, according to a person familiar with the data. Nevertheless, that figure is inconsistent with indicators on the nation’s March seaborne exports and supplies to domestic refineries.

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 before 23:00 CST have tanks completely full, Friday prices will go UP 7 cents then Saturday prices will fall 7 cents~Be Safe

NMEX Crude     $ 80.70 UP $.0900

NYMEX ULSD    $2.6605 DN $.0705

NYMEX Gas      $2.8133 DN $.0068

NEWS

May WTI crude oil on Thursday closed up +0.09 (+0.11%), and May RBOB gasoline closed down -0.68 (-0.24%).

Crude oil and gasoline prices Thursday settled mixed.  A weaker dollar Thursday and the outlook for tighter global oil supplies gave crude prices a boost.  However, gains were limited after weekly U.S. jobless claims rose more than expected, signaling softness in the U.S. labor market that is bearish for energy demand and crude prices.

Another bullish factor is the continued halt of Iraqi crude exports from the Turkish port of Ceyhan.  Thursday, the Turkish government said it wants to negotiate a $1.5 billion settlement that it has been ordred to pay before it allows the resumption of Iraqi crude exports through its pipeline.  400,000 bpd of oil exports 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.

Signs of weakness in the U.S. economy are negative for energy demand and crude prices.  Thursday’s weekly jobless claims report showed weekly initial unemployment claims fell -18,000 to 228,000, showing a weaker labor market than expectations of 200,000.  Also, weekly continuing claims rose +6,000 to a 15-month high of 1.823 million, showing a weaker labor market than expectations of 1.700 million.

Crude prices surged Monday after OPEC+ on Sunday 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.

The outlook for stronger Chinese crude oil demand is bullish for prices.  China National Petroleum Corp, the country’s largest refiner, predicts that oil demand in China may expand this year by +5.1% to 756 MMT as the country emerges from the pandemic.  However, oil demand in China has recently been weak.  China car sales in Jan-Feb fell -9.4% y/y and international flights from China were at only 22% of pre-pandemic levels as of March 16.

In a bearish factor, Vortexa Monday reported that the amount of crude stored on tankers that have been stationary for at least a week rose +5.4% w/w to 104.60 million bbl in the week ended March 31.

Rising crude demand in India is bullish for oil prices.  India’s oil ministry reported on March 22 that India Feb crude oil imports rose +8.5% y/y to 19.1 MMT, the most in seven months.

Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of March 31 were +4.1% above the seasonal 5-year average, (2) gasoline inventories were -6.4% below the seasonal 5-year average, and (3) distillate inventories were -11.4% below the 5-year seasonal average.  U.S. crude oil production in the week ended March 31 was unchanged at 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 Thursday that active U.S. oil rigs in the week ended April 7 fell by -2 rigs to 590 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, Thursday prices will remain flat to unchanged but keep your tanks topped due to Friday prices will jump UP again~Be Safe

NMEX Crude     $ 80.61 UP $.2900

NYMEX ULSD    $2.7310 UP $.0643

NYMEX Gas      $2.8201 UP $.0830

NEWS

The surprise announcement by OPEC+ of another production cut totaling 1.16 million barrels per day caused oil prices to rally 8%. I previously wrote about this in my weekly research for Primary Vision Network, stating that the likelihood of a cut remained low and that the cartel was aware of the oversupply in the markets and the lack of imminent demand resurgence. However, when viewed from a different perspective, the cut makes sense precisely for the same reason.

For at least the past year, the prevailing narrative in oil markets has been a tug-of-war between two sentiments. Some have worried about a sudden resurgence in demand due to the post-COVID-19 recovery and the reopening of China, while others have been skeptical of these rosy outlooks. Those who are skeptical about a rebound in demand point out that China already filled its inventories when prices were low and that clouds of an impending recession, or at least a serious global economic slowdown, seem to be gathering on the horizon. The recent cuts by OPEC+ would suggest the demand skeptics are correct.

Recently, it was reported that stockpiles at Fujairah climbed “for the first time in a month”. On March 22, data from the Fujairah Oil Industry Zone revealed that the stockpiles of all oil products at the UAE’s Port of Fujairah saw a gain for the first time in a month. The data showed that the total inventories surged by 10% in the week concluding on March 20, reaching 21.338 million barrels. This gain marked the first increase in stockpiles since the week ended February 20, as per the FOIZ data exclusively obtained by S&P Global Commodities Insights on the same day. Prior to this, stockpiles had declined by 13% in the three previous weeks, which ended on March 13..

Moreover, data from Vortexa also corroborates the growing bearish sentiment in the oil markets. Total seaborne oil loadings were high, with loading volumes higher than their seven-year range, hitting 50 million barrels per day in March, up by 400,000 barrels per day from February. The demand for products is also at a “multi-year” high in March at 46 million barrels per day.

Russian crude oil exports have also remained stable despite the sanctions. Despite Moscow’s announcement of a 500,000-barrel-per-day production cut, Russian crude loadings remained stable month-over-month at 3.6 million barrels per day in March. However, there has been a significant increase in Russian diesel loadings, which have surged by 400,000 barrels per day month-over-month to an exceptionally high 1.5 million barrels per day last month. This upswing in diesel loadings is partially attributed to postponed loadings from February. Nonetheless, it remains at a multi-year high and is contributing to the global market dynamics. I have highlighted in many articles and posts that the entire sanctions-on-Russia saga is not a disruption to oil supply but a re-orientation of global oil flows.

Against this backdrop, it’s understandable that OPEC+ producers would be cautious about oil prices in the near future and aim for a level that avoids budgetary issues. Although the breakeven prices for most oil-producing countries have decreased, the countries in OPEC+ are taking into account the grim prospect of a global economic slowdown and adjusting their production accordingly to match the supply and demand dynamics of the market.

According to the CFTC and ICE  data, the same bearish sentiment was evident in the paper markets and the trading of futures contracts before the cut. Interest in short positions started to surpass that of long ones, amid concerns about a potential credit crunch. Hedge funds were reducing their holdings in crude oil and refined fuels, with contracts worth 142 million barrels sold in the week ending March 21, while adding 139 million barrels in the previous week. It was also reported that the total sales were the most in any fortnight since 2017 (May).

In my opinion, the markets are misinterpreting the production cuts. OPEC+ has made it clear that they do not anticipate strong demand, they recognize that markets will be in oversupply, and they do not want to experience the budgetary issues they faced during the 2014 and Covid-19 era. The news, in reality, is bearish.

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

Please see below marketing material and promotions. These promotions will run from April 12^th to May 23^rd. This can be used in email blasts or whatever other marketing materials you may send out to your clients in hopes of keeping us top of mind and to help drivers save money and earn points. Please let me know if you need anything further! Thank you for your partnership!

The 7FLEET Diesel Network is a nationwide network of truck diesel lanes established by 7-Eleven, Inc.  These truck-friendly locations are built with professional drivers in mind with payment acceptance, food offerings and other amenities which better serve the trucking industry.  The 7FLEET Diesel Network currently includes over 260+ Speedway locations in 24 states with future expansion to the 7-Eleven family of brands in the coming months which will bring the total site count over 450+.

Fueling Strategy: Please fuel as needed today, tonight before 23:00 CST have tanks completely full, Wednesday prices will go UP 4.5 cents~Be Safe

NMEX Crude     $ 80.71 UP $.2900

NYMEX ULSD    $2.6667 UP $.0041

NYMEX Gas      $2.7371 UP $.0204

NEWS

May WTI crude oil on Tuesday closed up +0.29 (+0.36%), and May RBOB gasoline closed down -2.04 (-0.74%).

Crude oil and gasoline prices Tuesday settled mixed with crude posting a 2-1/4 month high.  Crude prices have carryover support from Sunday when OPEC+ unexpectedly announced a -1.0 million bpd cut in crude production.  A slump in the dollar index Tuesday to a 2-month low was also supportive for energy prices.  However, crude prices fell back from their best levels, and gasoline declined on signs of a slowdown in the U.S. labor market after the Feb JOLTS job openings fell more than expected.

Crude prices rose +25 cents/bbl above their Tuesday afternoon closing level after the API reported that U.S. crude supplies fell -4.3 million bbl last week.  The consensus is that Wednesday’s weekly EIA crude inventories will fall by -1.7 million bbl.

Signs of weakness in the U.S. economy are negative for energy demand and crude prices.  Tuesday’s economic reports showed the Feb JOLTS job openings fell -632,000 to a 1-3/4 year low of 9.931 million, showing a weaker labor market than expectations of 10.500 million.  Also, Feb factory orders fell -0.7% m/m, weaker than expectations of -0.5% m/m.

Another bearish factor for crude prices is the resumption of Iraqi crude exports from the Turkish port of Ceyhan.  On Tuesday, the Iraqi government and Kurdish officials said they would sign an agreement to allow the resumption of 400,000 bpd of oil exports from the Turkish port of Ceyhan.  The crude exports were halted last week 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 Monday after OPEC+ on Sunday 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 -80,000 bpd to 29.16 million bpd.

The outlook for stronger Chinese crude oil demand is bullish for prices.  China National Petroleum Corp, the country’s largest refiner, predicts that oil demand in China may expand this year by +5.1% to 756 MMT as the country emerges from the pandemic.  However, oil demand in China has recently been weak.  China car sales in Jan-Feb fell -9.4% y/y and international flights from China were at only 22% of pre-pandemic levels as of March 16.

Weakness in the crude crack spread is bearish for oil prices.  The crack spread Tuesday fell to a 6-week low, discouraging refiners from purchasing crude oil to refine it into gasoline and distillates.

In a bearish factor, Vortexa Monday reported that the amount of crude stored on tankers that have been stationary for at least a week rose +5.4% w/w to 104.60 million bbl in the week ended March 31.

Rising crude demand in India is bullish for oil prices.  India’s oil ministry reported on March 22 that India Feb crude oil imports rose +8.5% y/y to 19.1 MMT, the most in seven months.

Last Wednesday’s EIA report showed that (1) U.S. crude oil inventories as of March 24 were +5.7% above the seasonal 5-year average, (2) gasoline inventories were -4.6% below the seasonal 5-year average, and (3) distillate inventories were -8.7% below the 5-year seasonal average.  U.S. crude oil production in the week ended March 24 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 March 31 fell by -1 rig to 592 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