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

Fueling Strategy: Please keep your tanks topped today, tonight before 23:00 CST have your tanks completely full of fuel due to Friday prices will jump UP 7 cents, Friday will be a Partial Fill ONLY  day due to prices will fall 10 cents~Be Safe

NMEX Crude     $ 81.22 UP $.6700

NYMEX ULSD    $3.2624 DN $.1011

NYMEX Gas      $2.3420 DN $.0427

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 top your tanks tonight before 23:00 CST Thursday prices will jump UP 8 cents then Friday look for another 7 cent jump UP ~ Be Safe

NMEX Crude     $ 80.55 UP $2.3500

NYMEX ULSD    $3.3629 UP $0.0670

NYMEX Gas      $2.4185 UP $0.0864

NEWS

Oil futures settled higher on Wednesday, finding support after U.S. government data revealed that domestic crude inventories fell by nearly 13 million barrels, down for a third consecutive week, ahead of this weekend’s OPEC+ decision on crude production levels.

U.S. and global benchmark crude prices, however, registered a monthly loss —the fifth monthly loss in six months, as traders looked for any signs of an easing of China’s COVID restrictions.

Price action

• West Texas Intermediate crude for January delivery rose $2.35, or 3%, to settle at $80.55 a barrel on the New York Mercantile Exchange, the highest since Nov. 22, according to Dow Jones Market Data. Prices based on the front month ended down by 6.9% for the month.
• January Brent crude the global benchmark, was up $2.40, or 2.9%, to end at $85.43 a barrel on ICE Futures Europe. Prices for the contract, which expired at the end of the trading session, fell 9.9% for the month. February Brent the most actively traded contract, gained 3.2% to $86.97 a barrel.
• Back on Nymex, December gasoline rose 3.7% to $2.4185 a gallon, end the month about 14% lower, while December heating oil was up 2% at $3.3629 a gallon, but lost nearly 20% for the month. The December contracts expired at the end of the session.
• January natural gas settled at $6.93 per million British thermal units, down 4.2% Wednesday, but up around 9% for the month.

Supply data

The Energy Information Administration on Wednesday reported that US Crude inventories dropped 12.6 million barrels for the week ended Nov. 25. That followed two consecutive weekly losses.

On average, analysts forecasted a decline of 4.4 million barrels, according to a poll conducted by S&P Global Commodity Insights. The American Petroleum Institute said late Tuesday that U.S. crude inventories fell 7.9 million barrels last week, according to news reports.

In a note Wednesday, Alex Hodes, energy analyst at INTL FCStone, pointed out that exports of crude hit nearly 35 million barrels for the week and crude and refined product exports hit a fresh all-time high of 11.8 million barrels a day.

The EIA also reported weekly inventory increases of 2.8 million barrels for gasoline and 3.5 million barrels for distillates. The S&P Global Commodity Insights survey had called for increases of 600,000 barrels for gasoline and 800,000 barrels for distillates.

Crude stocks at the Cushing, Okla., Nymex delivery hub fell by 400,000 barrels for the week, the EIA said, while stocks in the Strategic Petroleum Reserve declined by 1.4 million barrels.

China and OPEC+

Crude has also found support on expectations China will move to begin relaxing COVID curbs after a wave of rare protests. The restrictions have crimped crude demand from the world’s largest energy consumer.

Chinese demand “remains a top source of downside risk, as COVID containment efforts and related protests have created a challenging climate for near-term product demand,” said Robbie Fraser, manager, global research and analytics at Schneider Electric, in a daily note.

“The state of Chinese product demand stands alongside ongoing interest rate increases as the two most prominent downside risks to crude prices,” he said.

On Tuesday, reports said OPEC+ will hold a virtual meeting Sunday, instead of gathering in person. “Opting for no-drama optics seemingly increases the likelihood of a rollover decision,” Helima Croft, head of global commodity strategy and MENA research at RBC Capital Markets, wrote in a note Tuesday.

Monthly move

For the month, oil prices fell as “uncertainty emerged as the dominant influence on futures prices,” said Tyler Richey, co-editor at Sevens Report Research.

Oil followed the news tied to China’s zero-COVID policy throughout the month given its influence on energy demand.

Last week, much weaker than expected U.S. economic data “revamped concerns about a potentially deep and painful recession looming ahead,” Richey told MarketWatch. WTI then saw a brief intraday drop on Monday to its lowest price since December, while Brent touched it slowest level since January.

For now, WTI is holding onto its “long-standing range” between $76 and $93 with traders assessing the “fluid fundamental backdrop” as the market begins the final month of the year, he 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 partial fill ONLY tonight or better yet do NOT fuel until Wednesday when prices will drop drop 2.5 cents ~ Be Safe Today

NMEX Crude     $ 78.20 UP $.9600

NYMEX ULSD    $3.2959 UP $.0805

NYMEX Gas      $2.3321 UP $.0015

NEWS

Oil held onto gains as market uncertainty over OPEC’s upcoming decision on production tugged the price in opposite directions.

West Texas Intermediate rose 1.2% to settle above $78 Tuesday, after trading in a $3 range. Volatility was expected to rise in the days leading up to the meeting this weekend as traders search for any clue on how OPEC and its allies will respond to deteriorating market conditions for producers. The shape of the futures curve has flipped in recent weeks, signaling an oversupplied market.

OPEC+ does “not like contango and that is what has raised market expectations of deeper cuts,” Amrita Sen, chief oil analyst at consultant Energy Aspects, said in a Bloomberg TV interview. “I’m not ruling out deeper cuts — that’s of course on the table — but I would say that’s not our base case.”

Earlier in the session, prices rallied above $79 a barrel after Beijing said it would bolster vaccination among seniors, a move regarded by health experts as crucial for reopening the economy of the world’s biggest crude importer. Prices briefly flirted with losses after Reuters reported that the production cartel would stick with its current oil-output policy, citing unidentified people.

On Monday, Bloomberg reported that OPEC+ may consider supply cuts to counter market weakness; a move that could potentially deepen curbs agreed to last time members convened in October.

Oil has lost about 9% this month as a deteriorating physical market revealed slackening demand. OPEC+ gathering precedes a deadline for European Union curbs on Russian flows as the bloc struggles to agree on a price cap. Concerns that tighter monetary policy will slow consumption as well as doubts about demand in China prompted OPEC+ to announce a major output cut last month.

The weakening at the front of the oil future curve has been precipitous. On Monday, Brent’s nearest timespread closed at its weakest level since 2020, a sign of oversupply. Until this month it had been in the opposite structure, known as backwardation, all year. 

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     $ 77.24 UP $.9600

NYMEX ULSD    $3.2154 DN $.0237

NYMEX Gas      $2.3306 UP $.0024

NEWS

Oil rose as OPEC+ delegates said deeper production cuts could be an option when they meet this weekend.

West Texas Intermediate rose 1.3% to settle above $77 a barrel. Earlier in the session, oil prices slumped below $74 to the lowest since December as protests over harsh anti-Covid measures erupted across China triggered a broad selloff in commodities and equity markets. With the oil market’s structure looking increasingly weak, delegates from the group say additional reductions could be an option.

The nearest portion of the Brent and WTI futures curves flipped into contango — a bearish structure indicating oversupply — with physical markets also under pressure. Speculators markedly reduced bullish bets, posting the sixth-largest reduction in net-long positions on record for Brent last week. Underscoring the market’s shaky fundamentals, JPMorgan Chase & Co. reduced its Brent crude forecast by $8 to $90 as it expects Russian production to hit prewar levels by mid-2023. 

OPEC+ will meet Sunday to decide on its next output level, while European Union nations debate whether to set a price cap as low as $62 a barrel on exports of Russian crude oil. Several countries demanded a level that could put more pressure on Moscow, but the talks remain stuck, diplomats said.

Over the weekend, the US moved to grant super major Chevron Corp. a license to resume oil production in Venezuela after sanctions halted all drilling activities almost three years ago. The sanctions relief comes after Norwegian mediators announced the restart of political talks between President Nicolas Maduro and the opposition. Yet Chevron’s CEO Mike Wirth said it might take years to begin to refurbish those oil fields, meaning additional output won’t be immediate. 

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 Thursday prices will fall another 2.5 cents then Friday prices will drop 11 cents ~ Be Safe

NMEX Crude     $ 77.94 DN $3.0100

NYMEX ULSD    $3.3593 DN $0.1120

NYMEX Gas      $2.4744 DN $0.0661

Have a Great Turkey 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, Wednesday prices will drop 2 cents then Turkey Day prices will fall another 2.5 cents ~ Be Safe

NMEX Crude     $ 80.95 UP $.9100

NYMEX ULSD    $3.4713 DN $.0260

NYMEX Gas      $2.5405 UP $.1034

NEWS

Oil edged higher as investors juggled an uncertain supply outlook alongside a European Union proposal to soften Russian crude sanctions.

Prices firmed Tuesday after a bumpy ride in the prior session that saw crude briefly plunge on speculation  OPEC+ was considering an output hike. Group leader Saudi Arabia and fellow Gulf producer Kuwait both rejected the suggestion, prompting a recovery. West Texas Intermediate futures rose to settle near $81 a barrel.

Meanwhile, the EU watered down its latest sanctions proposal for a price cap on Russia’s oil exports. The block proposed adding a 45-day transition to the introduction of the cap, softening key shipping provisions.

Covid concerns have led oil prices lower this month. Looming European sanctions on Russian flows — and a Group of Seven price-cap plan — have boosted uncertainty, with Chinese buyers pausing some Russian purchases. The cloudy outlook across the market has affected liquidity, with open interest for WTI the lowest since 2014.

“Crude is still in the process of reversing the OPEC rumor of production increases from yesterday,” said Dennis Kissler, senior vice president at Bok Financial Securities in an interview. “While China’s Covid issues are a concern, the price break the past two trading sessions was definitely overstated.”

Crude-consumption trends in China remain in the spotlight as repeated Covid-19 outbreaks prompt officials to press on with lockdowns and curbs on movement , hurting the outlook for demand. This comes just weeks after investors had speculated Beijing may be moving away from its zero-tolerance stance. 

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