Fueling Strategy: Please fuel as needed today/tonight ~ Be Safe

NMEX Crude     $ 91.79 DN $.8200

NYMEX ULSD    $3.7811 DN $.1337

NYMEX Gas      $2.6531 DN $.0817

NEWS

Oil slumped as China’s continued adherence to its Covid-Zero policy dampened hopes of a demand rebound.

West Texas Intermediate remained little changed near $92 after a day of volatile trading. Most commodities dropped Monday as China signaled a continuation of its Covid-Zero policy. Tight fuel supplies and a weakening dollar contained the drop, at one point propelling Brent above $99 a barrel to its highest intraday since the end of August.

Officials at China’s National Health Commission said the country will unswervingly adhere to current virus controls, cooling the optimism that had helped crude rally to a two-month high last week.

“Near term fundamentals have been moving toward the bullish side,” wrote Dennis Kissler, senior vice president at Bok Financial Securities, in a market note. “However, news this morning that China may not be relaxing COVID restrictions as anticipated last week is bleeding back into the market causing pressure.”

Oil has been buffeted in recent weeks by the uncertainty of demand in China, a looming Russian exports ban and the decision by the Organization of Petroleum Exporting Countries and its allies to rein in production. Gathering concerns about a global slowdown and tighter monetary policy have also swung prices. Despite concerns about long-term demand, fuel inventories are tight, thrusting Brent back toward $100 a barrel. The global benchmark traded as high as $99.56 earlier M0nday.

Money managers have been betting on higher prices in the coming months. Net-bullish Brent crude bets climbed to the highest level since June last week, while options markets have seen a flurry of bullish positions taken of late.

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: Have your tanks completely full of fuel before 23:00 CST, Saturday prices will go up 19 cents, Sunday prices will continue UP 5 cents~Be Safe

NMEX Crude     $ 92.61 UP $4.4400

NYMEX ULSD    $3.9148 UP $0.0495

NYMEX Gas      $2.7348 UP $0.0409

NEWS

Oil closed at the highest level since August as markets rallied over China easing its Covid restrictions.

Brent crude futures settled above $98 a barrel for a third straight weekly gain. China is said to be working on plans to scrap a system that penalizes airlines for bringing virus cases into the country, a move that suggests the nation may be easing its so-called Covid Zero policy, paving the way for higher crude demand.

Oil has struggled to find direction in recent sessions, with lackluster trading volumes rendering futures especially susceptible to macro market moves. Adding to volatility is the push and pull between a tightening supply outlook and concerns over a global economic slowdown. The prospect of renewed demand from China, the world’s biggest crude importer, is propelling futures to levels not seen since August, while new Russian sanctions taking force in December are also bullish for crude.

“There are too many geopolitical risks on the table — that should keep oil’s trajectory higher,” said Ed Moya, senior market analyst at Oanda Corp. “If the dollar continues to slide here, oil’s strength could be relentless.”

China’s Covid Zero strategy, which relies on lockdowns and mass testing to stamp out infections, has weighed on the nation’s economy and on the crude market. Oil demand in 2022 is seen falling by 400,000 barrels a day due to the virus curbs, according to Bank of China International Ltd. analysts.

PRICES:

• WTI for December delivery advanced $4.44 to settle at $92.61 a barrel in New York.
• Brent for January settlement gained $3.90 to $98.57 a barrel.

“With China’s easing some COVID restrictions especially for air travel most traders are taking the news as a positive pull to demand in the near future,” said Dennis Kissler, senior vice president at Bok Financial Securities.

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: Keep tanks topped today, tonight before 23:00 have tanks full of fuel, Friday prices will go UP 5 cents, Saturday prices will go up 19 cents~Be Safe

NMEX Crude     $ 88.95 DN $1.8300

NYMEX ULSD    $3.8653 UP $0.1879

NYMEX Gas      $2.6939 DN $0.0033

NEWS

Oil settled lower on Thursday, with U.S. prices posting their first loss in three sessions on as fears that aggressive monetary tightening by the Federal Reserve will tip the economy into recession.

Price action

• West Texas Intermediate crude for December delivery fell $1.83, or 2%, to settle at $88.17 a barrel on the New York Mercantile Exchange after ending Wednesday at $90 — the highest front-month finish since Oct. 10.

• January Brent crude BRN00 the global benchmark, was down $1.49, or nearly 1.6%, at $94.67 a barrel on ICE Futures Europe.
• Back on Nymex, December gasoline fell 0.1% to $2.6939 a gallon, while December heating oil added 5.1% at $3.8653 a gallon.
• December natural gas dropped 4.7% to $5.975 per million British thermal units after climbing by 9.7% on Wednesday.

Market drivers

Concerns that the Fed is “much more likely to overshoot on rates rather than doing too little” have grown, raising the risk of the economy “tipping” into recession, said Robbie Fraser, manager, global research and analytics at Schneider Electric.That’s a particularly “bearish prospect for crude prices due to the potential demand hit, and is further reinforced by the stronger dollar that weighs on dollar-denominated crude prices,” he said in daily commentary.

The Fed on Wednesday raised its key interest rate by 75 basis points, or 0.75 percentage points, as expected, delivering a policy statement that was interpreted as a signal that the size of rate increases would likely fall at the December meeting.  Fed Chairman Jerome Powell, in a subsequent new conference, said that while smaller rate rises may be in store in future meetings, it was premature to talk about a pause in rate increases and that the peak in rates would be higher than Fed officials previously thought and that rates would likely remain high for a long period, while the path to a “soft landing” for the economy had narrowed due to persistently high inflation.

The dollar rose sharply in the wake of the Fed’s decision, with the ICE U.S. Dollar Index a measure of the currency against a basket of six major rivals, up 1.4%. The index is up nearly 18% year to date. A stronger dollar is seen as a negative for commodities priced in the unit, making them more expensive to users of other currencies.

Still, Tyler Richey, co-editor of Sevens Report Research, pointed out that oil has been trending higher in recent weeks. It’s found support amid “renewed hopes that China’s economy will reopen in the months ahead, rising geopolitical tensions surrounding the Ukraine war as well as in the Middle East,” and prospects of a standing bid from the Energy Department in the $70 a barrel range as the U.S. government looks to replenish the Strategic Petroleum Reserve, he said. “An uncertain global economic outlook, and more specifically increasingly pressing recession worries, are for now keeping WTI prices capped in the low $90s, but due to supply concerns, there are emerging risks of an upside move as we approach the end of the year,” Richey 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 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

 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 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