Fueling Strategy: Please partial fill tonight, Thursday prices will drop 5 cents! Be Safe

NMEX Crude     $ 90.00 UP $1.6300

NYMEX ULSD    $3.6774 UP $0.0563

NYMEX Gas      $2.6972 UP $0.1027

NEWS

Oil futures climbed on Wednesday, with global and U.S. benchmark crude settling at their highest prices in more than three weeks, after U.S. government data showed weekly declines for both crude and gasoline inventories and as recent reports said Iran may be preparing an attack on Saudi Arabia.

Oil prices held onto their gains for the session following the Federal Reserve’s decision to lift its benchmark interest rate by 75 basis points, finding support from the potential for a slowdown in the rate hikes ahead, analysts said.

PRICE ACTION

• West Texas Intermediate crude for December delivery rose $1.63, or 1.8%, to settle at $90 a barrel on the New York Mercantile Exchange.
• January Brent crude the global benchmark was up $1.51, or 1.6%, at $96.16 a barrel on ICE Futures Europe. Both Brent and WTI oil settled at their highest since Oct. 10, according to Dow Jones Market Data.
• Back on Nymex, December gasoline rose 4% to $2.6972 a gallon, while December heating oil added nearly 1.6% to $3.6774 a gallon.
• December natural gas rose 9.7% to settle at $6.268 per million British thermal units. Prices have been volatile in recent sessions, losing 10.1% on Tuesday after a nearly 12% rise Monday.

SUPPLY DATA

A tick higher in refining activity, ongoing strength in exports, and a move lower in oil production “encouraged a 3 million-barrel draw to crude inventories,” said Matt Smith, lead oil analyst, Americas, at Kpler, in emailed commentary.

The Energy Information Administration on Wednesday reported that U.S. crude inventories fell by 3.1 million barrels for the week ended Oct. 28.

On average, analysts forecasted a decrease of 1.6 million barrels, according to a poll conducted by S&P Global Commodity Insights.

The EIA also showed a weekly inventory decline of 1.3 million barrels for gasoline, while distillate stockpiles edged up by 400,000 barrels. The analyst survey had called for decreases of 1.9 million barrels for gasoline and 1 million barrels for distillates.

Crude stocks at the Cushing, Okla., Nymex delivery hub climbed by 1.3 million barrels to 28.2 million barrels for the week, stocks in the SPR declined by 1.9 million barrels to 399.8 million barrels, and total domestic petroleum production fell by 100,000 barrels to 11.9 million barrels, EIA data showed.

Meanwhile, a “widening discount for WTI relative to Brent throughout trading in the second half of October points to continued strength in U.S. exports and, coupled with a seasonal recovery in domestic refinery runs, should mean continued U.S. crude [supply] draws in the coming weeks,” said Troy Vincent, senior market analyst at DTN.

However, “given that U.S. commercial crude stocks are far more robust than those of refined products, this outlook of falling U.S. crude stocks isn’t decidedly bullish for oil prices, as it will likely coincide with a recovery in East Coast refined product imports and product inventories where they’re needed most,” said Vincent.

OTHER MARKET DRIVERS

Oil prices held onto the bulk of their gains after the Federal Reserve’s decision to raise interest rates as expected, which was released about a half hour ahead of the futures price settlement.

In the press conference that followed, Fed Chair Jerome Powell acknowledged that at some point “it will be appropriate to slow the pace of increases.”

Stewart Glickman, energy equity analyst at CFRA Research, told MarketWatch that there was “a glimmer of hope that the incessant rate hikes could be moderating soon.” If that “puts some wind in the sails for the economy, it’s a plus for GDP, and therefore for oil demand. Positive for oil, all else being equal.”

“The risk, of course, is that inflation numbers subsequently refuse to cooperate, and then we have to go back to a more hawkish Fed,” said Glickman.

Powell also said at the press conference that interest rates are likely to end up “higher than previously expected.”

Halfway through the press conference, Powell’s statements indicated more of a hawkish stance on higher rates, said Tariq Zahir, managing member at Tyche Capital Advisors.

This put pressure on risk assets in all asset classes, he said, adding that Powell has said several times we have ways to go in raising rates.

“This should weigh on equity markets and energy markets, while creating a bid to yields in the bond markets,” said Zahir.

Oil has been pressured on worries the Fed’s aggressive rate increases will tip the global economy into a sharp slowdown, curtailing demand for crude. Prices rose Tuesday, however, amid reports that Iran was planning an attack on Saudi Arabia.

“A lot of the Iran/Saudi Arabia news was priced in yesterday, but the latest headlines did reiterate their legitimacy and remind traders of the bullish supply-side threat,” Tyler Richey, co-editor at Sevens Report Research, told MarketWatch.

 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

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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

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, Wednesday prices will drop 15+ cents ~ Be Safe

NMEX Crude     $ 88.37 UP $1.8400

NYMEX ULSD    $3.6211 DN $0.0530 (New Month)

NYMEX Gas      $2.5945 UP $0.0688 (New Month)

NEWS

OPEC’s crude production held steady last month after the group pledged a symbolic cutback to stabilize market sentiment. The Organization of Petroleum Exporting Countries increased daily output by 30,000 barrels to 29.98 million barrels in October, according to a Bloomberg survey.

It had agreed to make a token reduction of 100,000 barrels a day — rescinding an increase made the previous month. With so many members already lagging behind their targets few needed to do any actual cutting, and overall output was well below the group’s target even after the slight rise.

The announced reduction for October nonetheless heralded more vigorous action from the group. Saudi Arabia and its partners plan a much deeper cut of 2 million barrels in a day this month, a move that sparked fierce criticism from US President Joe Biden. White House officials accused Riyadh of endangering the world economy and giving succor to fellow producer Russia in its war on Ukraine by pushing up crude prices. The kingdom has countered that the move was necessary to offset a darkening economic outlook.

In October, Saudi output edged marginally lower to 11 million barrels a day, the survey showed. Kuwait also dialed back slightly, as did most African nations like Angola, Congo and Equatorial Guinea. The reductions were countered by increases in Iraq, Nigeria and the United Arab Emirates, resulting in the modest monthly increase for the group as a whole. With most members pumping considerably below their quotas as a result of under-investment and disruptions, total OPEC supply is roughly 1 million barrels a day below target.

The full 23-nation alliance between OPEC and non-members, known as OPEC+, will meet again to review production policy on Dec. 4. Bloomberg’s survey is based on ship-tracking data, information from officials and estimates from consultants including Kpler Ltd., Rystad Energy and Rapidan Energy Group.

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     $ 86.53 DN $1.3700

NYMEX ULSD    $4.1909 DN $0.3589

NYMEX Gas      $2.8107 DN $0.0959

NEWS

The U.S. diesel shortage is worsening as distillate inventories crash to multi-year lows. U.S. refiners permanently shut down some refinery capacity at the start of the pandemic when fuel demand plunged. A diesel shortage and high diesel prices don’t bode well for the global economy, which could tip into recession at some point next year. Multi-year low inventories and constraints in supply are exacerbating a diesel shortage in the United States, especially on the East Coast.

Diesel demand continues to be strong after recovering faster from the pandemic slump than other fuels such as gasoline, refiners say. But several factors have combined this year to deplete U.S. distillate inventories, which include diesel and heating oil. And ahead of the winter, the distillate fuel crunch is worsening.

U.S. refining capacity is now lower than it was before Covid, as operable refinery capacity shrank in 2021 for a second consecutive year to stand at 17.9 million barrels per calendar day as of January 1, 2022, according to EIA estimates. U.S. refiners permanently shut down some refinery capacity at the start of the pandemic when fuel demand plunged, while others closed facilities to convert them into biofuel refineries.

Some refineries were under maintenance this autumn, reducing the availability of products. In addition, the U.S. banned imports of all Russian energy products after the Russian invasion of Ukraine and hasn’t imported any petroleum products from Russia since April. Lower refinery capacity in the U.S. since the pandemic, seasonal maintenance at refineries globally, and a major strike in France have all combined in recent weeks to create a shortage of middle distillates, not only in the United States, but also worldwide.

The world is also scrambling for diesel supply also in view of the looming EU embargo on Russian fuel imports by sea, expected to kick in in early February. A diesel shortage and high diesel prices don’t bode well for the global economy, which is slowing down and could tip into recession at some point next year. Distillate fuels are used in transportation, agriculture, manufacturing, and heating.

In the U.S., distillate fuel inventories are about 20% below the five-year average for this time of year, according to the EIA’s latest weekly inventory report. The U.S. has just 25 days of diesel supply in reserve, with some regional markets very tight.According to CNBC, U.S. diesel reserves at the end of October have never been so low since 1951, with the Northeast most exposed to low levels of diesel stocks.

Not that refiners aren’t trying—refinery utilization on the East Coast was at 102.5% in the week to October 21, per EIA data.Yet, distillate inventories are much lower than normal, and diesel and heating oil prices remain high and stoke inflation as they make consumer goods and heating bills more expensive.

Households in the Northeast who rely on heating oil for space heating will see 27% higher bills this winter compared to last winter, the EIA said in its Winter Fuels Outlook in October.

“Our forecast for heating oil margins this winter reflects price pressures that have currently been affecting the U.S. distillate market, including low inventories, low imports, and limited refining capacity,” the EIA said.

For diesel, one fuel supplier has already issued an alert for the East Coast. “East Coast fuel markets are facing diesel supply constraints due to market economics and tight inventories,” Mansfield said last week.

“Because conditions are rapidly devolving and market economics are changing significantly each day, Mansfield is moving to Alert Level 4 to address market volatility. Mansfield is also moving the Southeast to Code Red, requesting 72 hour notice for deliveries when possible to ensure fuel and freight can be secured at economical levels,” the supplier said.

The Biden Administration hasn’t ruled out the idea of limiting U.S. fuel exports in order to restore inventories and lower prices. Refiners are opposed to that idea, say saying that “Banning or limiting the export of refined products would likely decrease inventory levels, reduce domestic refining capacity, put upward pressure on consumer fuel prices, and alienate U.S. allies during a time of war.”

Tom Kloza, Global Head of Energy Analysis at OPIS, told USA Today last week, “Between now and the end of November, if we don’t build inventories, the wolf will be at the door.”

“And it will look like a big ugly wolf if it’s a cold winter.”  

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 keep your tanks topped today, tonight before 23:00 CST have tanks completely full of fuel, Saturday prices will jump UP 21 cents then look Sunday for prices to jump UP another 21 cents  ~ Be Safe

NMEX Crude     $ 87.90 DN $1.1800

NYMEX ULSD    $4.5498 UP $0.2159

NYMEX Gas      $2.9066 DN $0.1050

NEWS

Oil companies brought in staggering profits once again as people worldwide struggled with high gasoline and energy prices.

Exxon Mobil broke records with its profits in the third quarter, raking in $19.66 billion in net income. The Irving, Texas company said Friday that it booked $112.07 billion in quarterly revenue, more than double the revenue it received last year during the same period.

Chevron had $11.23 billion in profits, almost reaching the record profits it attained last quarter, and the San Ramon, California, company brought in $66.64 billion in revenues.

The high cost of energy has hit consumers in multiple ways. Americans, especially low-income workers, have struggled with painfully high gasoline prices in recent months, paying more than $4.80 on average for a gallon of regular at the beginning of July, according to AAA. High energy prices also hit manufacturers and retailers, who pass on those costs to customers in the form of high prices for food, clothing and other goods.

Gasoline eased somewhat towards the end of the quarter, but customers were still paying more than $3.79 a gallon of regular, on average, in late September.

Exxon boosted production of gasoline and oil during the quarter to meet growing demand. It had its best-ever refinery output in North America and its highest globally since 2008, the company said. And it produced 3.7 million barrels of oil or oil-equivalent per day, and had record production in the Permian Basin, the most productive oil field in the U.S.

The investments Exxon made, even during the pandemic, enabled the company to increase production to meet the needs of customers, said CEO Darren Woods in a conference call with investors.

“Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company move forward, continuing to invest and build to help meet the demand we see today and position the company for long term success in each of our businesses,” Woods said.

Natural gas prices have also been high, especially as demand for liquefied natural gas has remained strong globally. The U.S. has been increasingly exporting liquefied natural gas to Asia and Europe, especially as supply of Russian natural gas declined after Russia invaded Ukraine and prices skyrocketed. Woods listed inventory concerns as one of the reasons American natural gas prices rose by 15% during the quarter.

Oil prices were initially high during the quarter but fell gradually. A barrel of benchmark U.S. crude was selling for more than $100 when the quarter began in July but was selling for closer to $80 at the end of September. Even so, diesel prices remain high, according to AAA, which affects delivery costs and raises prices for all sorts of consumer goods.

To help meet growing demand, Exxon is expanding its oil refinery in Beaumont, Texas and expects the additional refined product to become available in early 2023.

Exxon’s refining businesses was the star performer during the quarter, said Peter McNally, global sector lead at Third Bridge, in a note to investors. “While some of the political rhetoric cooled during the quarter, investment in the company’s fuel manufacturing segment heated up along with the profits,” McNally said.

American oil companies aren’t the only ones benefiting from high energy prices. European energy giants Shell and Total Energies reported huge profits Thursday. That fueled calls to tax the profits of energy producers which have benefited from high oil and natural gas prices following Russia’s invasion of Ukraine, even as Europe heads into winter during an energy crisis.

Shares of Exxon Mobil added about 2% in midday trading, while Chevron added less than 1%.

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 keep your tanks full of fuel today, tonight before 23:00 CST top’em out, Thursday prices will jump UP 5 cents then Friday prices will jump UP 15 cents  ~ Be Safe

NMEX Crude     $ 87.91 UP $2.5900

NYMEX ULSD    $4.1201 UP $0.1529

NYMEX Gas      $2.8994 DN $0.0166

NEWS

The diesel shortage that had the White House on edge last week is spreading from the Northeast to the Southeast, prompting at least one supplier to initiate emergency protocols.

“Because conditions are rapidly devolving” fuel supplier Mansfield Energy is now requiring a 72-hour notice for deliveries to secure fuel and freight, according to a note to customers. In areas that are tightest, fuel prices are running 30-80 cents higher than the market average, Mansfield said, adding that Tennessee is “seeing particularly acute challenges.”

“At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity,” the note said.

Diesel inventories nationwide are at lowest seasonal level ever heading into winter, and some areas in the Northeast have already started rationing fuel. The shortage is almost certain to drive up prices for the heating and trucking fuel, further straining household budgets.

Supplies are on the way but not fast enough. The Colonial pipeline, the main source of supply for Southeast markets, recently became fully booked to move diesel, heating oil and jet fuel. But the first full cycle will not hit Atlanta till Nov. 3, and will reach the New York Harbor area a week after that, according to the latest pipeline schedule. And while New York is set to receive several overseas cargoes, they won’t arrive until the end of this month.

The scarcity has prompted some traders to take physical delivery of fuel off the Nymex contract, turning the financial tool into an unusual source of supply. Those deliveries will take place in the first-half of November.

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 full of fuel tonight before 23:00 CST, Wednesday prices will jump UP 9 cents then Thursday look for prices to continue UP 5 cents  ~ Be Safe

NMEX Crude     $ 85.32 UP $.7400

NYMEX ULSD    $3.9672 UP $.0471

NYMEX Gas      $2.9160 UP $.1858

NEWS

Diesel appears scarce heading into the northern hemisphere’s winter and will push fuel prices higher, bedeviling policymakers who are focusing on crude to tame energy inflation, warned Goldman Sachs Group in a note to clients.

Under investment in the nation’s fuel making capacity, exacerbated by refinery closures and disruptions, is leading to a shortage of refined products, especially diesel, whose stocks are at “unprecedentedly low levels,” said the bank. Goldman sees an “incredibly challenging” first quarter as the Group of 7 embargo on Russian products goes into effect.

As a result of what it’s describing as a structural shortage of product, Goldman raised its price forecast for gasoline and diesel next year to $4.32 and $5.07 a gallon, respectively, from $3.99 and $5.34. The bank sees gasoline prices higher even as it forecasts demand falling below 2021 levels.

The bank warned that many of the government’s efforts to fight higher energy prices focus on crude and have little impact on fuels, for which consumers actually pay.

“Refining constraints can create a sharp wedge between where crude and product markets clear, making policy management of crude supply less effective at controlling consumer prices,” analysts including Callum Bruce and Roman Langlois wrote in the note.

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 & Monday ~ Be Safe

NMEX Crude     $ 84.58 DN $.4700

NYMEX ULSD    $3.9201 UP $.0878

NYMEX Gas      $2.7302 UP $.0682

NEWS

Oil inched lower as long-term demand concerns about China and the rest of the global economy dampened sentiment even as a raft of earnings buoyed Wall Street.

West Texas Intermediate settled below $85 as traders remained glued to the outlook for economic growth and further central rate hikes. Earlier Monday, crude slipped below $83 a barrel as investors digested Chinese economic data that showed a mixed recovery during the third quarter but regained some footing as earnings results showed US companies held their ground amid mounting slowdown concerns. Nonetheless, Treasury Secretary Janet Yellen cautioned investors at a speech in New York that stresses in the global market could disrupt a US financial system, which has so far proved resilient in the face of multiple shocks. “Oil prices continue to have trouble maintaining altitude as economic turbulence around the globe is shifting focus from the market being undersupplied to a potential economic crash,” said Phil Flynn, a senior market analyst at Price Futures Group.

Crude has lost a third of its value since June as fears over a global economic slowdown continue to hang over the market. However, significant OPEC+ output cuts and looming European Union sanctions on Russian oil flows have raised concerns about an energy crunch heading into winter. For now though, traders remained glued to the outlook for economic growth and further central bank hikes. The decision by the Organization of Petroleum Exporting Countries and its allies to curb supply from November drew a sharp rebuke from the US, which previously called on producers for more oil to help curb inflation. President Joe Biden’s top energy adviser said Sunday the cut was largely a political move.

Brent futures remained backwardated, a bullish structure where near-dated contracts are more expensive than later-dated ones. The prompt time spread widened to as much as $2.25 in backwardation, compared with $1.44 a week earlier.

Substantial headwinds for oil continue to emanate from China. The potential for rebounding Chinese demand dimmed as President Xi’s leadership changes have “fueled speculation that tackling Covid and maintaining national security are being prioritized above economic considerations, which is depressing the oil demand outlook,” said Harry Altham, an analyst at brokerage StoneX Group. China also recently imposed Covid-19 curbs in Guangzhou, a southern Chinese manufacturing hub.  China ramped up its oil imports and processing last month as refineries returned from seasonal maintenance, while exports of fuel products jumped after the allocation of new quota. Inbound shipments rose to the highest since May, according to Bloomberg calculations based on government data.

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 Saturday prices will drop almost 15 cents so keep your tanks topped due to Sunday prices will go back up 7.5 cents! Be Safe

NMEX Crude     $ 85.10 UP $.5400

NYMEX ULSD    $3.8323 UP $.0755

NYMEX Gas      $2.6620 UP $.0142

NEWS

Oil edged higher after a volatile week of trading as concerns over a global economic slowdown continued to dun the market. West Texas Intermediate futures rose 0.6% to settle above $85, marking a weekly gain. Prices have been oscillating within a narrow band since late-September as investors juggle slowdown fears against signs of oil-market tightness, while fluctuating risk sentiment in broader markets whipsaws crude prices.

Oil has a lost a third of its value since early June due to slowdown concerns and aggressive measures by central banks to tame inflation, However, the market is facing a period of supply uncertainty in coming months as OPEC+ cuts output and the European Union implements sanctions on Russian flows. “The bullish side of tighter supplies, especially diesel, against rising interest rates and a possible coming recession is keeping a nervous choppy trade in crude space,” said Dennis Kissler, senior vice president at Bok Financial Securities.

Brent remains steeply backwardated, a bullish structure where near-dated contracts are more expensive than later-dated ones. The prompt time spread was $2.17 a barrel in backwardation, compared with $1.48 a week earlier.

The impact of the looming sanctions on Russia, which will include petroleum products from early next year, is already filtering through the broader market. Croatia is working to wean its refinery off of Russian feedstock, while some Indian refiners have halted new spot purchases.

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 BUT plan on Friday’s 9 cent drop in prices then Saturday prices will drop almost 15 cents! Be Safe

NMEX Crude     $ 85.98 UP $.4300

NYMEX ULSD    $3.7568 DN $.1475

NYMEX Gas      $2.6478 DN $.0044

NEWS

Oil settled little changed, paring earlier gains, after a drop in broader equity markets countered optimism that China may ease quarantine restrictions.

West Texas Intermediate’s more active December futures contract settled near $85 a barrel after a choppy session. Prices have been oscillating within a narrow band since late-September, taking cues from fluctuating risk sentiment in broader markets. Earlier in the session, prices rallied as Chinese bureaucrats debated whether to reduce mandatory-quarantine periods for visitors. The market is “still searching for a direction,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “The market may be reaching a point where it’s finding a bit more of a range until we really understand that there’s a trend to global economic activity.”

Crude has seen choppy trading this month, with the market caught between worries about a global economic slowdown and supply curbs from the Organization of Petroleum Exporting Countries and its allies. The US has released oil from emergency reserves to cool prices, while also saying it will refill that supply if prices are at or below $67 to $72. “The Biden administration basically put in hard floor for WTI crude,” said Ed Moya, senior market analyst at Oanda Corp. “Which means oil should remain supported if China doesn’t suffer a major Covid setback.”

China’s Covid Zero strategy, which relies on mass testing and lockdowns to stamp out infections, has added to bearish factors weighing on global crude demand this year. The shift in policy would need to be approved by senior leaders, so could still be altered or not deployed at all, said one person.

There are still questions about China’s demand outlook, with the nation’s oil buying muted in the latest trading cycle, even after refiners were allocated new quotas to export oil products. Infections have also swelled in Beijing to the highest in four months, stoking concerns about potential curbs as the flareup worsens in the middle of the twice-a-decade party congress.

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, Thursday prices will drop 9 cents then Friday look for prices drop another 9 cents! Be Safe

NMEX Crude     $ 85.55 UP $2.7300

NYMEX ULSD    $3.9043 DN $0.0892

NYMEX Gas      $2.6522 UP $0.1016

NEWS

The Biden administration plans to release 15 million barrels from US emergency reserves and may consider freeing up significantly larger additional supplies this winter as it tries to ease high gasoline prices that have become a liability for Democrats in next month’s midterm elections.

President Joe Biden will announce the plan Wednesday, senior administration officials told reporters on condition of anonymity to preview his remarks. It’s the final tranche of oil from a program the White House began in the spring to release a total of 180 million barrels of crude from the Strategic Petroleum Reserve to address high gas prices stemming from Russia’s invasion of Ukraine among other factors. The president is also prepared to conduct additional, significant SPR sales this winter if conditions require it, according to a senior administration official. Biden will speak at 1:15 p.m. Washington time, the White House said. “We think that this will make some difference,” National Economic Council Director Brian Deese said Wednesday in an interview with Bloomberg Television. “We’re going to keep at it. Keep a close eye on these things with an understanding that we have these tools on the table, and we’ll deploy them when it’s in America’s interest.”

In addition, the White House announced new details on its plan to replenish the emergency stockpile, which has the capacity to hold about 714 million barrels and contained 405.1 million barrels as of Oct. 14. The administration plans to initiate purchases when West Texas Intermediate crude prices are at or below $67 to $72 per barrel, according to a senior administration official.

The Energy Department on Wednesday will issue notice that the 15 million barrels from the original tranche will hit the market in December. A decision will be made next month whether additional releases are needed in January, the official said. The department is also finalizing a rule announced in May enacting a new buyback method to allow for a “competitive, fixed-price bid process,” with prices potentially locked in well before crude is delivered. The plan is designed to save taxpayer money while sending a signal to the market about the US government’s intention to refill its reserves, according to officials.

The White House announced the sale as it responds to rising costs at the pump amid factors that include OPEC+’s decision to slash production targets by 2 million barrels a day and volatile oil prices following Russia’s invasion of Ukraine.

Republicans have used gasoline prices, one of the most visible signs of inflation, as a cudgel against Biden and Democrats. Polls show the economy has re-emerged as a top issue for voters after the Supreme Court’s decision ending nationwide abortion rights and a Justice Department investigation into former President Donald Trump energized Democrats over the summer. Republican Representative Cathy McMorris Rodgers slammed the move in a statement released early Wednesday. “Instead of using the SPR for political bailout and empowering America’s adversaries, President Biden should end his war on American energy and join Republican efforts to reclaim our energy dominance,” the Washington state lawmaker said.

In remarks from the White House on Wednesday, Biden plans to reinforce warnings he has issued in recent weeks to oil companies against raising pump prices, a senior administration official said.

The national average price for regular unleaded gasoline was $3.87 on Monday, down from $3.92 last week, according to data from the American Automobile Association. That’s down from a peak of $5.02 in June.

Separately, the administration is still weighing limits on exports of fuel to keep more gasoline and diesel inside the US, an idea that has sparked division within the administration. Although no timeline has been set for a decision on that potentially more dramatic step, it isn’t expected to happen before November’s midterms, according to a person familiar with the matter. “At this moment when we have uncertainty and uncertainty for American consumers, we have to keep all options on the table,” Deese said Wednesday when asked about an export ban, adding, “That’s what we’re doing.”

In March, Biden unveiled his plan to discharge the 180 million barrels in total to stem the surge in prices for consumers. To date, about 165 million barrels have been delivered or put under contract since the program was put into effect.

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