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.

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 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