Fueling Strategy: Please top your keep tonight before 23:00 tonight, Wednesday prices will jump UP 11 cents ~ Be Safe

NMEX Crude     $ 82.82 DN $2.6400

NYMEX ULSD    $3.9935 DN $0.0917

NYMEX Gas      $2.5506 DN $0.0425

NEWS

President Joe Biden will announce an additional release of crude oil from the Strategic Petroleum Reserve on Wednesday in the range of 10 million to 15 million barrels, sources familiar with the plan told CNBC. The move aims to extend the current SPR delivery program, which began this spring, through December, the sources said.

The EU embargo on Russian oil is scheduled to go into effect on Dec. 5, and the White House release is intended to offset some of the expected volatility in the oil market stemming from the implementation of the EU embargo. So far this year, the White House has released about 165 million barrels of crude from the SPR, out of a total that it said would be around 180 million. The announcement of an additional 10 million to 15 million barrels on Wednesday would represent the culmination of the current release.

The White House and Energy Department did not respond to requests to comment.

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, Tuesday keep your tanks topped out ~ Be Safe

NMEX Crude     $ 85.46 DN $.1500

NYMEX ULSD    $4.0835 UP $.1050

NYMEX Gas      $2.5931 DN $.0378

NEWS

Oil prices were barely changed after struggling to find direction all day as traders contend with both a dimming demand outlook and tightening crude supplies. West Texas Intermediate futures settled barely lower after a topsy-turvy session that sent prices below $85 and above $87, often mirroring the direction of equity markets.

Crude’s fundamentals face substantial headwinds with demand anticipated to slow as China adheres to its Covid Zero policy and the US Federal Reserve expected to further raise interest rates next month. Sluggish growth in China has added to a raft of bearish factors for oil, including aggressive monetary policy by central banks to try and tame inflation and a stronger US dollar.

Simultaneously, OPEC+’s output cut has tightened the supply outlook and created uncertainty for the US-Saudi relationship. The International Energy Agency last week warned OPEC+’s output curbs could tip the global economy into recession, while the US criticized the cuts. White House National Security Adviser Jake Sullivan said options for reevaluating US-Saudi relations include “changes to our approach to security assistance.” He spoke Sunday on CNN’s “State of the Union.”

“Crude oil markets remain exceptionally choppy following the OPEC+ meeting. Counter intuitively, the decision to cut production to support prices has exacerbated volatility as it has increased the geopolitical and policy risk in the market while offsetting some of the fundamental risks,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “The more focused the market is on policy and geopolitical risk, the more volatile they will remain.”

Adding to supply concerns, trading houses and refiners are racing to book storage tanks in Rotterdam in the coming months on expectations of a supply crunch after European Union sanctions on Russia take effect, according to a storage official at Koninklijke Vopak NV. The storage company has seen heightened inquiries about using its tanks to bring in Russia’s Urals grade into the northwest Europe refining hub up to the Dec. 5 cutoff, the official said. 

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 16 cents, Sunday prices will drop 11.5 cents ~ Be Safe

NMEX Crude     $ 85.61 DN $3.5000

NYMEX ULSD    $3.9802 DN $0.1146

NYMEX Gas      $2.6309 DN $0.0725

NEWS

Oil prices plummeted more than 3% on Friday as global recession fears and weak oil demand, especially in China, outweighed support from a large cut to the OPEC+ supply target. Brent crude futures dropped $2.94, or 3.1%, to settle at $91.63 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $3.50, or 3.9%, to $85.61. The Brent and WTI contracts both oscillated between positive and negative territory for much of Friday but fell for the week by 6.4% and 7.6%, respectively.

U.S. core inflation recorded its biggest annual increase in 40 years, reinforcing views that interest rates would stay higher for longer with the risk of a global recession. The next U.S. interest rate decision is due on Nov. 1-2. U.S. consumer sentiment continued to improve steadily in October, but households’ inflation expectations deteriorated a bit, a survey showed. The improvement in consumer sentiment “is being viewed as a negative because it means the Fed needs to break the spirit of the consumers and slow the economy down more, and that’s caused an increase in the dollar and downward pressure on the oil market,” said Phil Flynn, analyst at Price Futures Group in Chicago.

The U.S. dollar index rose around 0.8%. A stronger dollar reduces demand for oil by making the fuel more expensive for buyers using other currencies.

In U.S. supply, energy firms this week added eight oil rigs to bring the total to 610, their highest since March 2020, energy services firm Baker Hughes Co said. China, the world’s largest crude oil importer, has been fighting COVID-19 flare-ups after a week-long holiday. The country’s infection tally is small by global standards, but it adheres to a zero-COVID policy that is weighing heavily on economic activity and thus oil demand.

The International Energy Agency (IEA) on Thursday cut its oil demand forecast for this and next year, warning of a potential global recession. The market is still digesting a decision last week from the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, when they announced a 2 million barrel per day (bpd) cut to oil production targets. Underproduction among the group means this will probably translate to a 1 million bpd cut, the IEA estimates. Saudi Arabia and the United States have clashed over the decision.

Meanwhile, money managers raised their net long U.S. crude futures and options positions by 20,215 contracts to 194,780 in the week to Oct. 11, the U.S. Commodity Futures Trading Commission (CFTC) said.

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,Friday prices will remain unchanged but Saturday prices will jump UP 16 cents ~ Be Safe

NMEX Crude     $ 89.11 UP $1.8400

NYMEX ULSD    $4.0948 UP $0.1620

NYMEX Gas      $2.7034 UP $0.0731

NEWS

Distillate fuel oil spot futures prices nearly reached resistance at $4.1200 today. A slight increase in refinery production of distillates, and little change to import/export balances during the week were not enough to allay growing concerns for winter ULSD availability. Futures prices rose nearly seventy-five cents, closing very near the weekly high.

Inventories of distillate fuel oil lost 3.4 million barrels during the week. This was only part of a loss of ten million barrels of commercial oil stocks for the week ended September 30, 2022. The losses could become a recipe for real hardship this winter should weather be as demanding as many forecasters have suggested.

There are now fewer than thirty days’ distillate supply in the United States – moving further below the 36.5 days’ supply typical for this time of year. And concerns for the condition of our domestic distribution system add to problems for supply managers.

The situation developing in Europe has become even more unpredictable. Most immediately, more than 60% of France’s refining capacity is down because of strikes over wages. This has pressured prices higher and added to upside price pressure. Imports have risen as well, draining already tight global supplies. Russian losses on the battlefield, ironically in regions of Ukraine formally annexed by Russia, have been at least an embarrassment. This has raised fears that Russia could turn to nuclear weapons, inviting escalation from the EU and the United States. As the weekend began, the bridge that connects Crimea to the mainland sustained major damage, adding to regional chaos.

With all this happening in Europe, the OPEC+ announcement that it would reduce production by two million barrels daily would seem to be almost a footnote to last week’s activity. And perhaps it was.

An ostensible reduction of two million barrels daily supply from OPEC+ will certainly be much less in reality. Many OPEC countries are already struggling to produce to quota. One analyst puts the effective cut at perhaps 750,000 barrels per day. It is, nonetheless, material.

The implications for inflation and, now, probable further Fed rate hikes invites speculation on possible recession. It also casts the long-standing relationship between the United States and Saudi Arabia in a new light. But new light has done little to illuminate the path of global geopolitics going forward.

  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, Thursday prices will go up 2 cents. Friday prices will remain unchanged ~ Be Safe

NMEX Crude     $ 87.27 DN $2.0800

NYMEX ULSD    $3.9328 UP $0.0020

NYMEX Gas      $2.6303 UP $0.0030

NEWS

Oil flopped for a third day after a key US inflation metric beat estimates, piling onto worries that the US Federal Bank will continue interest rate hikes.

West Texas Intermediate futures settled at $87.27 a barrel on Wednesday as inflation reports compounded forecasts of lower crude demand. Prices paid to US producers rose more than expected last month, a worrisome sign for investors indicating that more rate hikes are likely ahead to slow down global growth.

Federal Reserve officials said Wednesday that they would raise rates to a restrictive level and hold them there. Traders are still expecting a 75 basis point hike next month. “Inflation is still on most traders’ agenda, and with the economy still showing inflationary tendencies, ideas of higher interest rates are causing a move back to the sidelines which is pressuring the front month futures,” said Dennis Kissler, senior vice president at Bok Financial Securities.

Earlier in the session, the Organization of Petroleum Exporting Countries reduced forecasts for the amount of its crude that will be needed in the current quarter, making the case for the contentious supply cut announced by the group and its allies last week.

Meanwhile, the US, which will need to help fill the gaps created by OPEC+’s reduction, pared back its 2023 supply and demand estimates, according to a US Energy Information Administration report Wednesday. The International Energy Agency will release its monthly outlook this week, shedding further light on demand trends into 2023 and the likely impact of sanctions on Russian crude flows.

US Deputy Treasury Secretary Wally Adeyemo said countries already are trying to secure contracts to buy Russian oil before European Union sanctions take effect on Dec. 5, Reuters reported. “One big aspect of the bull case for oil prices is a meaningful loss of Russian supplies, especially as we stare down that Dec. 5th deadline,” said John Kilduff, founding partner at Again Capital. “That’s what’s getting everybody kind of spooked. But to the extent we’re going to see those supplies maintained and stay on the market — and it looks like we are — that’s a big bearish element for the market.”

Crude rallied last week after the OPEC+ grouping agreed to cut oil supply. Still, the market’s focus remains on the health of the global economy as aggressive rounds of interest rate increases dampen the outlook for growth.

As banks adjusted to the shifting outlook, RBC Capital Markets warned that global benchmark Brent could sink into the low $60s in 2023 in the event of a deep recession.  It also outlined two more-benign scenarios, while cautioning that given the cross-currents, “nailing an oil price is an exercise in futility.”

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, we suggest shopping street prices compared to the Net PPG discounts until we see wholesale prices correct downward. Great news, Wednesday prices will fall 10 cents. Today’s market did a complete reversal with diesel finishing up 1.61 cents ~ Be Safe

NMEX Crude     $ 89.35 DN $1.7800

NYMEX ULSD    $3.9308 UP $0.0161

NYMEX Gas      $2.6245 UP $0.0045

NEWS

Oil slumped as fears of a global economic slowdown overshadow the threat of tighter crude supplies from OPEC and its partners.

West Texas Intermediate settled near $89 a barrel, further trimming gains that crude made last week in the wake of a decision by the Organization of Petroleum Exporting Countries and its allies to cut output. Prominent Wall Street figures, including JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, said the US and global economies are likely to sink into recession next year. The International Monetary Fund and World Bank also saw rising risks of a slowdown.  “The lack of risk appetite and technical moves look to be responsible for driving crude lower after a few very bullish sessions in the aftermath of the OPEC+ quota cut announcement,” said Bart Melek, head of commodity strategy at TD Securities.

Oil fell last month to its lowest since January as slowdown concerns gathered force, later rallying after the Organization of Petroleum Exporting Countries and its allies responded by reducing output. Investors are weighing how higher interest rates intended to fight inflation will impact demand against supply disruptions caused by the war in Ukraine heading into the northern hemisphere’s winter.

Further clouding the demand outlook, in China, the world’s largest crude importer, authorities are signaling that there’ll be no let up in the nation’s Covid Zero policy. The approach is sustainable and the country must stick to it as it is key to stabilizing the economy and protecting lives, the Communist Party’s flagship newspaper said in a commentary Tuesday.  European Union sanctions on Russia, which are set to take effect Dec. 5, are also beginning to affect trading because of the time lag between purchasing a cargo and getting it to its destination.

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, we suggest shopping street prices compared to the Net PPG discounts until we see wholesale prices correct downward. Great news, We did see a correction down 10 cents which will be reflected in Wednesday’s prices ~ Be Safe

NMEX Crude     $ 91.13 DN $1.5100

NYMEX ULSD    $3.9147 DN $0.1040

NYMEX Gas      $2.6228 DN $0.1118

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 tanks topped tonight, Friday prices will continue going up 15 cents then they’ll jump UP another 18 cents Saturday ~ Be Safe

NMEX Crude     $ 88.45 UP $.6900

NYMEX ULSD    $3.8649 UP $.1780

NYMEX Gas      $2.6814 UP $.0129

NEWS

Oil prices could easily surge back above $100 a barrel next year as already-tight supplies could be further challenged by an increase in Chinese consumption, according to Global X Management.

China may add a meaningful amount of demand for the commodity, helping boost prices to about $110, Rohan Reddy, director of research at Global X Management, said in a Bloomberg TV interview. OPEC’s reluctance in increasing production and a potentially more dovish Federal Reserve are also bullish drivers for oil, he said.

Reddy said energy markets are set to remain volatile “both on the upside and downside” and that shares of pipeline companies, which stand to benefit from growing US oil supplies, are a good alternative for traders seeking protection from those wild price moves. 

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 tonight, Thursday prices will jump UP again 17 cents then Friday look for another 15 cents added to prices. OPEC+’s announcement this morning to cut production by 2 million barrels prices will continue guiding the market upwards. Sadly, We will see $100 per barrel crude ~ Be Safe

NMEX Crude     $ 87.76 UP $1.2400

NYMEX ULSD    $3.6869 UP $0.1511

NYMEX Gas      $2.6685 DN $0.0145

NEWS

OPEC+ agreed to make a large production cut to keep oil prices high, drawing an immediate rebuke from the US. The move was defended by ministers from the producers group as necessary to protect the oil industry and their own economies from the risk of a global slowdown. The White House slammed the decision and indicated that it would respond to the supply reduction. The Organization of Petroleum Exporting Countries and its allies agreed on Wednesday to reduce their collective output by 2 million barrels a day from November. The outdated production baselines used to measure the curbs means that actual oil supply will only fall by about half that amount, but it’s still the biggest cut since 2020 that risks adding another shock to the world’s economy.

Brent crude, the international benchmark, jumped as much as 2.4% to a two-week high of $93.96 a barrel. “The president is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine,” the White House said in a statement after the meeting. Earlier on Wednesday, US officials were making calls to counterparts in Gulf Arab states trying to discourage the production cuts, according to people familiar with the situation. President Biden has long been campaigning for OPEC+ to boost output, visiting Saudi Arabia earlier this year in search of lower pump prices for Americans ahead of midterm elections in November.

The White House’s national security adviser, Jake Sullivan, and National Economic Council Director Brian Deese, said in the statement that the US would release another 10 million barrels of oil from the Strategic Petroleum Reserve in November, and that “the president will continue to direct SPR releases as appropriate to protect American consumers and promote energy security.”

In addition to the cuts that will take effect from November, OPEC+ extended its cooperation agreement until the end of 2023. The supply curbs will remain in place until the end of next year, unless the market changes, said Saudi Energy Minister Prince Abdulaziz Bin Salman. After the meeting, Nigerian Minister of State for Petroleum Resources Timipre Sylva was frank about the group’s motivation for cutting output. “OPEC wants prices around $90,” Sylva said in an interview with Bloomberg. “It would destabilize some economies” if crude fell below that level, he said. Other ministers, including United Arab Emirates Energy Minister Suhail Al Mazrouei, said they were motivated by a desire to increase investment in the oil industry in order to guarantee sufficient supplies in the future.

The cut of 2 million barrels a day will be measured against the same baseline as the previous OPEC+ agreements. Several member countries are already pumping well below those levels as their oil industries face various challenges, ranging from long-term underinvestment to international sanctions. That includes Russia, for which the new daily crude quota of 10.5 million barrels a day is about 500,000 barrels above its September output. A move to cap the export price of Russian oil could lead to a further temporary cut in the country’s production, Deputy Prime Minister Alexander Novak said in an interview. “The lack of details and the lack of clarity” about how policies like the price cap will be implemented, and how other participants in the oil market will react, mean the coming two months will be “a period of uncertainty,” Prince Abdulaziz said in an interview with Bloomberg TV.

The Saudi minister said he hoped the trajectory of the world economy would become “clearer and brighter.” Yet the supply curbs announced by OPEC+ may not protect its members from a slowdown in the way they want, said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “This decision risks agitating the US while potentially leading the FOMC to keep tightening for longer as inflation will become more sticky,” Hansen said. “The result being a stronger dollar, higher bond yields and a global economic slowdown that may end up taking longer to reverse.”

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