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Market Close: May 27 Up, Diesel Up 3.5 cents, Gasoline Up 13.84 cents

May 27th, 2022 by

Fueling Strategy: Please tonight have tanks completely full before 23:00, Saturday prices will jump up another 10 cents then Sunday look for another 3.5 cents UP ~ BE Safe
NMEX Crude     $115.07 UP $.9800
NYMEX ULSD    $4.0029 UP $.0349
NYMEX Gas      $4.0158 UP $.1384
Have a Great Holiday,
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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

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Market Close: May 26 Up, Diesel Up 10 cents, Gas Up

May 26th, 2022 by

Fueling Strategy: Tonight before 23:00 CST have tanks completely full of fuel, Friday prices will jump UP 8.5 cents then Saturday they’ll jump another 10 cents ~ BE Safe

NMEX Crude     $114.09 UP $3.7600
NYMEX ULSD    $3.9680 UP $0.1016
NYMEX Gas      $3.8774 UP $0.0457
NEWS

(CNN) Energy Secretary Jennifer Granholm said President Joe Biden is laser-focused on knocking down sky-high gasoline prices, though she concedes that even the most powerful person on the planet has limited influence to do that.

“He’s obsessed with the fact that gas prices are so high and people are hurting,” Granholm told CNN on Tuesday following a rare tour of the Strategic Petroleum Reserve, the nation’s emergency oil stockpile.
Granholm argued that by unleashing record amounts of emergency oil to ease strains caused by the war in Ukraine, Biden has already used the “biggest tool” at his disposal to address energy crises.
“The president doesn’t control the price,” the former governor of Michigan said during the interview at a General Electric wind turbine facility in New Orleans.
Granholm was speaking hours after touring Bayou Choctaw, one of the SPR’s four major oil storage sites. Located nearly 100 miles west of New Orleans, the heavily-fortified Louisiana facility is the busiest it’s been since its 1987 opening as officials race to get emergency barrels to market.
Flanked by state and local officials, Granholm received a briefing on Tuesday from SPR staffers about how the system responds to supply crunches like the current one.
Encircled by barbed wire fences and protected by electronic alarm systems and security dogs, the facility features a maze of pipes and sophisticated high-pressure pumps used to either inject, or more recently, extract oil stored deep underground.
The oil is kept in caverns located 2,000-feet below the surface inside salt domes. The caverns are massive — deep enough to stack the Washington Monument four times — and each holds about 10 million barrels of crude oil.

‘Everything is still on the table’

The steady march higher in pump prices — the national average hit a record high of $4.60 a gallon on Wednesday, up 51% from a year ago — is forcing US officials to contemplate even more intervention.
Asked if the Biden administration is seriously considering additional action, such as banning US oil exports, Granholm said: “Everything is still on the table.”
However, some industry experts have warned a ban on shipments of US crude abroad would only inflate world oil prices, which are what pump prices are based on.
Granholm added that Biden’s advisers are “pressure-testing” a series of moves to make sure there are no unintended consequences.

‘Mind-blowing’

Gas prices initially retreated after Biden announced a record-setting release of 180 million barrels of oil from the SPR in late March following the disruptions caused by Russia’s invasion of Ukraine. The relief proved to be temporary, however, and today the national average price per gallon is 37 cents higher than it was on the day Biden announced the unprecedented step.
Granholm defended the SPR strategy, saying it is an effort to get supply to meet demand and that other global events are also influencing prices, including the war in Ukraine and China’s Covid lockdowns.
The Biden administration is now releasing so much emergency oil, on top of Congressionally-mandated sales to raise revenue, that some in the energy industry doubted the SPR could even pump out that much crude all at once.
Yet SPR officials said the system has been able to handle the drawdowns with minimal issues, although the reserve now holds the lowest amount of oil since 1987.
“It’s kind of mind-blowing we are able to do it,” Paul Oosterling, project manager at the SPR Office of Project Management, told reporters.
Technically, the SPR could supply even more oil: the system has a maximum drawdown capacity of 4.2 million barrels per day.

Climate ambition meets economic reality

Biden ran on the most aggressive climate agenda of anyone ever elected president. Yet he is now draining oil from the SPR at a record pace, urging US oil and gas companies to pump more oil and trying to persuade OPEC to add supply.
Asked if this is an awkward juxtaposition, Granholm replied, “he’s responding to the current situation.”
“You can walk and chew gum. You can do both,” Granholm said. “The fact that we are paying these outrageous prices is almost an exclamation point on the fact that we need to move to clean energy so we are not in this position in the future.”
The gas price spike is squeezing families, forcing them to make difficult decisions about their finances.
“The people who are hurt the most are the people who have the least,” Democratic Congressman Troy Carter, Sr. told CNN on Tuesday after touring the SPR.
Carter, whose district includes New Orleans, said it’s easy to Monday-morning quarterback the administration, but he is pleased with what they’ve done so far to combat high gas prices.
“As it stands today, I think the White House is doing as much as they can given the circumstances,” he said. “We continue to push to have them do more.”

Granholm: Big Oil is putting profit ahead of citizens

After taking office, Biden wasted no time in focusing on the climate crisis. On his first day in office, he signed executive orders revoking the permit for the Keystone XL pipeline, imposing a moratorium on oil and gas leasing in the Arctic and putting the United States on track to re-enter the Paris Climate Agreement.
Now, Biden officials are openly pleading with Big Oil to pump more, not less. “We want them to get their rig counts up. We want them to increase production so that people are not hurting,” Granholm said.
After losing gobs of money in 2020 when oil prices crashed, the industry is now minting cash and returning billions to investors in the form of share buybacks and dividends. Even so, US oil production remains significantly below pre-Covid levels.
“They are prioritizing profit for their shareholders over helping their citizens,” Granholm said, adding that some companies are starting to ramp up production and US output is on track to hit record highs next year. “It is extremely frustrating to see that there’s not a full-on return to production at the moment of crisis.”
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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

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Market Close: May 25 Up, Diesel up 8.46 cents, Gas up 2.07 cents

May 25th, 2022 by

Fueling Strategy: Please fuel as needed today/tonight, Thursday prices will go up slightly 1.3 cents ~ Be Safe
NMEX Crude     $110.33 UP $.5600
NYMEX ULSD    $3.8664 UP $.0846
NYMEX Gas      $3.8317 UP $.0207
NEWS
Crude oil and gasoline prices Wednesday settled moderately higher.  Tightness in global crude supplies is offsetting Chinese demand concerns after Chinese Premier Li Keqiang said China’s economic difficulties are worse than in 2020.  However, crude prices fell back from their best levels Wednesday on a stronger dollar and a mostly bearish EIA inventory report.

Crude oil has support on Tuesday’s comments from Saudi Arabia’s Foreign Minister, who said there is nothing more his country can do to tame the oil markets, which implies it won’t boost its crude production further.

A bearish factor for crude is concern about Chinese energy demand after Chinese Premier Li Keqiang said Wednesday that “economic indicators in China have fallen significantly, and difficulties in some aspects and to a certain extent are greater than when the epidemic hit us severely in 2020.”

Oil prices are being undercut by the outlook for Chinese energy demand to remain weak this year.  UBS cut its China 2022 GDP forecast to 3.0% from 4.2%, citing the impact of its Covid Zero policy, while JPMorgan Chase cut its 2022 China GDP forecast to 3.7% from 4.3%, citing a deep contraction in Q2 because of China’s Covid restrictions.

The recent surge in Covid infections in China has forced the government to impose pandemic restrictions and lockdowns that have curbed economic growth and energy demand.  A resurgence of Covid infections in China has prompted the government to put some 45 million people under pandemic lockdowns.  Recent data showed that China’s apparent oil demand in April fell -6.7% y/y to 12.09 million bpd.  Also, China Apr crude processing fell -10% y/y to 51.81 MMT, a 2-year low.

A bearish factor for crude is the likelihood that the EU will be unable to approve a ban on Russian oil when EU leaders meet next week as Hungary continues to oppose the measure.  All EU member nations must approve the ban before it can become law.

Increased crude oil demand in India, the world’s third-largest crude consumer, is bullish for prices.  India’s oil ministry last Friday reported that India’s Apr crude imports rose +14.3% y/y to 20.9 MMT, the highest in 3-1/2 years.

Despite record-high prices, expectations for stronger U.S. fuel demand are bullish for crude prices.  The American Automobile Association (AAA) said it expects as many as 39.2 million people to travel this coming Memorial Day weekend, up +8.3% y/y and almost in line with 2017 levels.  Also, around 3 million people are expected to fly during the holiday weekend, surpassing 2019 levels.

The recent surge in diesel prices to a record high has provided support for the prices of gasoline and other refined products.  The diesel crack spread Apr 28 surged to a record high (data from 1986) on depleted global diesel supplies as countries worldwide shun Russian fuel supplies and scramble to obtain diesel supplies elsewhere.

Lower crude supplies from Libya are bullish for prices.  Libya April crude oil exports fell -16% m/m to 819.000 bpd, the smallest amount in 1-1/2 years, as damaged storage tanks from rebel attacks and political protests at key Libyan ports have curbed the country’s crude exports.

OPEC crude oil production in April rose by +10,000 bpd to a 2-year high of 28.700 million bpd.  OPEC was expected to increase output by +274,000 bpd in April, but supply constraints in Libya and Nigeria prevented OPEC from reaching that level.

Crude oil has support from ongoing concern that Russia may use energy as a weapon against countries that imposed sanctions for its attack on Ukraine.  Russia halted natural gas shipments to Bulgaria and Poland for failing to pay for Russian gas supplies in rubles.  Russia is trying to force its European customers to pay rubles for its oil and gas exports.

The amount of crude held worldwide in floating storage on tankers has decreased and is bullish for prices.  Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week in the week ended May 20 fell by -15% w/w to 95.72 million bbl.

Wednesday’s weekly EIA inventory report was mostly bearish for crude and products.  EIA crude inventories fell -1.02 million bbl, a smaller draw than expectations of -2.10 million bbl.  Also, EIA gasoline stockpiles fell -482,000 bbl, a smaller draw than expectations of -1.64 million bbl.  In addition, EIA distillate supplies rose +1.66 million bbl, a larger build than expectations of +1.0 million bbl.  On the bullish side, crude supplies at Cushing, the delivery point of WTI futures, fell -1.06 million bbl.

Wednesday’s weekly EIA report showed that (1) U.S. crude oil inventories as of May 20 were -14.1% below the seasonal 5-year average, (2) gasoline inventories were -7.9% below the 5-year average, and (3) distillate inventories were -21.1% below the 5-year average.  U.S. crude oil production in the week ended May 20 was unchanged w/w at 11.9 million bpd, which is -1.2 million bpd (-9.2%) below the Feb-2020 record-high of 13.1 million bpd.

Baker Hughes reported last Friday that active U.S. oil rigs in the week ended May 20 rose by +13 rigs to a new 2-year high of 576.  U.S. active oil rigs have risen sharply from the 16-1/2 year low of 172 rigs since Aug 2020, signaling an increase in U.S. crude oil production capacity.

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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

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Market Closed: May 24 Mixed, Diesel Up 1.30 cents, Gas Up 1.33 cents

May 24th, 2022 by

Fueling Strategy: Please keep tanks topped today/tonight, Wednesday prices will go UP 3 cents ~ Be Safe Today
NMEX Crude     $109.77 DN $.5200
NYMEX ULSD    $3.7818 UP $.0130
NYMEX Gas      $3.8110 UP $.0133
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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Posted in Fuel News | Comments Off

Market Close: May 23 Mixed, Diesel UP 2.97 Cents, Gas DN 3.93 Cents

May 23rd, 2022 by

Fueling Strategy: Please fuel as needed today/tonight ~ Be Safe
NMEX Crude     $110.29 UP $.0100
NYMEX ULSD    $3.7688 UP $.0297
NYMEX Gas      $3.7977 DN $.0393
NEWS
Oil prices were little changed on Monday, settling just slightly higher as worries over a possible recession vied with an outlook for higher fuel demand with the upcoming U.S. summer driving season and Shanghai’s plans to reopen after a two-month coronavirus lockdown. U.S. West Texas Intermediate (WTI) crude settled up 1 cent, or 0.01%, at $110.29 a barrel, while Brent crude futures settled up 87 cents, or 0.7%, to at $113.42.
“There are black clouds gathering around the financial markets here and it has started to impact crude oil,” said Bob Yawger, director of energy futures at Mizuho. “The economic wellbeing of the global economy is questionable at this point,” he added. Multiple threats to the global economy topped the worries of the world’s well-heeled at the annual Davos economic summit, with some flagging the risk of a worldwide recession.
International Monetary Fund Managing Director Kristalina Georgieva said she did not expect a recession for major economies but could not rule one out. Oil’s losses were limited by expectations gasoline demand would remain high.
The United States was set to enter its peak driving season beginning on Memorial Day weekend at the end of this week. Despite fears that soaring fuel prices could dent demand, analysts said mobility data from TomTom and Google had climbed in recent weeks, showing more drivers on the road in places such as the United States. To address a major supply crunch and blunt rising prices, the White House is weighing an emergency declaration to release diesel from a rarely used stockpile, an administration official said. The White House is considering tapping the Northeast Home Heating Oil Reserve, created in 2000 to help with supply issues and used only once in 2012 in the wake of Hurricane Sandy. The impact from such a release would be limited by the relatively small size of the reserve, which only contains 1 million barrels of diesel.
The European Union’s inability to reach a final agreement on banning Russian oil after that country’s invasion of Ukraine, which Moscow calls a “special operation,” has limited oil price gains. Hungary continues to hold out against the proposed ban, ensuring no sudden shock to supply. “The persistent squeeze in refined petroleum products in the U.S. and ever-present Ukraine/Russia risk underpinned prices,” said Jeffrey Halley, a senior market analyst at OANDA.
Shanghai, China’s commercial hub, aims to normalize life from June 1 as its coronavirus caseloads decline. Lockdowns in China, the world’s top oil importer, have hammered industrial output and construction, prompting moves to prop up the economy, including a bigger than expected mortgage rate cut on Friday. China said it would take targeted steps, including broadening its tax credit rebates, and rolling out new investment projects, to support its economy, state television quoted the cabinet as saying on Monday.
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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Posted in Fuel News | Comments Off

Market Close: May 20 Mixed, Diesel Down 5.29 Cents

May 20th, 2022 by

Fueling Strategy:Please before 23:00 CST tonight have your tanks completely full of fuel, Saturday prices will jump back UP 13 cents ~ Be Safe
NMEX Crude     $113.23 UP $1.0200
NYMEX ULSD    $3.7391 DN $0.0529
NYMEX Gas      $3.8370 UP $0.0053
NEWS
  • * Consumers are grappling with record high gas prices, but the surge is also hurting businesses.
  • * The national average for a gallon of gas hit a new high Thursday. California’s statewide average is now above $6.
  • * Russia’s invasion of Ukraine sent an already tight energy market reeling.
  • “We did not anticipate that transportation and freight costs would soar the way they have as fuel prices have risen to all-time highs,” Target CEO Brian Cornell said Wednesday. The surge in gasoline prices is impossible to miss and at the top of consumers’ minds as billboards announce that gas now costs $4, or $5, or even above $6 a gallon in some places. With prices at record highs, Americans are feeling the impact at the pump immediately. But higher fuel prices are a headwind for the wider economy too, beyond just consumers having less spending money. The rising cost of fuel, especially diesel, means that anything transported on a truck, train or ship is affected.
  • Energy costs are a major contributor to the decades-high inflation numbers showing up, as prices for all manner of goods and services march higher. “Energy, in a way, is the tail wagging the dog here,” Bob McNally, president at Rapidan Energy Group, said Wednesday on CNBC’s Power Lunch. “Diesel is really the economic fuel. It’s the lifeblood of the economy, transportation, power in some cases … so it really is embedded in economic activity and it’s filtered through so many goods and services.”
  • What are prices so high?
  • The surge in gasoline prices is thanks, in large part, to the jump in oil prices. Russia’s invasion of Ukraine is the latest catalyst to push crude higher, but prices were already on the move ahead of the war. Even before Covid, energy producers cut back on investment and less profitable projects under pressure from low prices and institutional shareholders demanding higher returns.
  • Then producers slashed output further during the throes of the pandemic, when the need for petroleum products fell off a cliff. People weren’t going anywhere and businesses were shuttered, so far less fuel was needed. Demand dropped so suddenly that West Texas Intermediate crude, the U.S. oil benchmark, briefly traded in negative territory.
  • Economies have since reopened, manufacturing has revived, and people are driving and flying again. This led to a surge in demand and an increasingly tight oil market beginning last fall. In November, President Joe Biden tapped the Strategic Petroleum Reserve in a coordinated effort with other nations, including India and Japan, in an effort to calm prices. But the relief was short-lived.
  • Russia’s invasion of Ukraine at the end of February sent an already fragile energy market reeling. U.S. oil shot to the highest level since 2008 on March 7, topping $130 per barrel. Russia is the largest oil and products exporter in the world, and the European Union relies on it for natural gas. While the U.S., Canada and others banned Russian oil imports shortly after the invasion, the European Union said it couldn’t do so without detrimental consequences.
  • Now, the bloc is trying to hammer out a sixth round of sanctions against Russia that includes oil, although Hungary is among those pushing back. Oil has since retreated from its post-invasion highs but remains firmly above $100. To put that number in context, at the beginning of 2022 a barrel of crude fetched $75, while at this time last year prices were closer to $63.
  • The rapid rise in oil and therefore fuel costs is causing a headache for the Biden administration, which has called on producers to pump more. Oil companies are reluctant to drill after pledging capital discipline to shareholders, and executives say that even if they wanted to pump more they simply can’t. They’re facing the same issues that are playing out across the economy, including labor shortages and rising prices for parts and raw materials, such as sand, which is key to fracking production.
  • Oil prices make up more than half of the ultimate cost for a gallon of gasoline, but it’s not the sole factor. Taxes, distribution and refining costs also influence prices.
  • Constrained refining capacity is beginning to play a larger role. Refining is the key step that turns crude oil into the petroleum products consumers and businesses use daily. The amount of oil that refiners can process has fallen since the pandemic, especially in the Northeast.
  • Meanwhile, petroleum product exports from Russia are being hit by sanctions, leaving Europe looking for alternate suppliers. Refiners are running nearly at full capacity, and crack spreads — the difference between refiners’ cost of oil and the price at which they sell their products — for diesel are now at record levels.
  • All of these factors are pushing gas prices higher. The national average for a gallon of gas hit a record $4.589 on Thursday, according to AAA, up from $3.043 at this time last year. The numbers are not adjusted for inflation.
  • Every state is now averaging more than $4 per gallon for the first time on record, while California’s statewide average is now above $6. Diesel prices are rocketing higher too. Retail diesel prices hit an all-time high of $5.577 a gallon on Wednesday, up 76% over the past year. Households are now shelling out $5,000 per year on gasoline, according to Yardeni Research, up from $2,800 a year ago.
  • How are fuel prices effecting companies?
  • Demand destruction, or the level at which high prices influence consumer behavior, from surging fuel costs might not have set in yet on a wide scale, but the impacts are filtering throughout the economy. Higher prices at the pump mean not only less spending money in consumers’ pockets but also expanding costs for companies, some or all of which will later be passed along to consumers.
  • Target is one of the companies grappling with higher costs. Shares of the store chain cratered 25% on Wednesday — the single worst day since 1987 — following Target’s earnings results, during which it warned about inflationary pressures. “We did not anticipate the rapid shifts we’ve seen over the last 60 days. We did not anticipate that transportation and freight costs would soar the way they have as fuel prices have risen to all-time highs,” Target CEO Brian Cornell said Wednesday on the company’s quarterly earnings call. He told CNBC that higher fuel and diesel costs will be a roughly $1 billion incremental cost during the fiscal year and a “significant increase that [Target] didn’t anticipate.”
  • Executives from Walmart made similar comments. ”[F]uel costs accelerated during the quarter faster than we were able to pass them through, creating a timing issue,” Walmart President and CEO Doug McMillon said Tuesday during the retailer’s first-quarter earnings call. “Fuel ran over $160 million higher for the quarter in the U.S. than we forecasted.” McMillon added that over the course of the quarter the company made “progress matching pricing to the increased costs.”
  • Tractor Supply executives noted that domestic and import freight costs have increased “substantially” over the last year and said they expect those trends to persist throughout 2022. ″The cost to ship an overseas container has more than doubled compared to pre-pandemic rates, and the cost of fuel is approximately one and a half times higher than it was even a year ago,” Amazon noted during its quarterly update.
  • Monster Beverage executives said the company experienced “significant increases in the cost of sales relative to the comparative 2021 first quarter primarily due to increased freight rates and fuel costs.”
  • The airline industry is also feeling the impact, as jet fuel prices — especially on the East Coast — surge.
  • Southwest Airlines noted that it saw a “significant rise in market jet fuel prices” over the last quarter, while United Airlines CEO Scott Kirby told CNBC that if today’s jet fuel prices hold it will cost the airline $10 billion more than in 2019.
  • Bob Biesterfeld, CEO at C.H. Robinson, summed it up. “The challenge that sits in front of us, however, is really the rising and record cost of diesel fuel, which has such a huge impact on overall freight pricing,” he said Wednesday on CNBC’s Closing Bell To put the surge in context, he said that a carrier will now have to pay close to $1,000 more than last year in fuel costs to move a shipment from Los Angeles to the East Coast. “That’s a real pressure on inflationary costs,” he said.
  • Is there any relief in sight?
  • Looking ahead, experts say that demand destruction could be the only thing to quell rising gasoline prices. John Kilduff, partner at Again Capital, said a $5 national average is in the cards for the busy driving season between Memorial Day weekend and the Fourth of July. “It appears [the national average] needs to go higher,” he said Wednesday on CNBC’s “Squawk on the Street.” “Last week we saw gasoline demand shoot up to what is typically summertime-type levels … there’s more upside here.” Kilduff pointed to two key factors spurring demand despite high prices: pent-up demand after the pandemic, and a strong labor market, which means that people will pay what they have to to get to their job.
  • Andy Lipow, president of Lipow Oil Associates, said he believes the national average will peak at between $4.60 and $4.65. He noted that the sell-off in stocks has dragged gasoline future lower, which could lead to some temporary reprieve for consumers at the pump.
  • But petroleum is also used in a lot of consumer products, especially plastic, which means even if gas prices temporarily cool, costs across the economy could remain elevated if oil stays high.
  • Rapidan’s McNally said at this point it will take a recession to rein in product inflation. “It’s not a happy forecast. But [gas prices] just have to go higher, because there is no sign yet of real demand capitulation … they will go higher until that happens,” 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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Posted in Fuel News | Comments Off

Market Close: May 19 Up, Diesel Up 12.39 Cents

May 19th, 2022 by

Fueling Strategy: Please partial fill only tonight, Friday prices will drop 13 cents but will jump back UP 12 cents Saturday  ~ Be Safe

NMEX Crude     $112.21 UP $2.6200
NYMEX ULSD    $3.7920 UP $0.1239
NYMEX Gas      $3.8317 UP $0.1111
NEWS

Oil rose in a choppy trading session as equity markets pared losses, shrugging off concerns of an economic recession.

West Texas Intermediate settled near $112 a barrel after trading in a $7 range on Thursday. Earlier, investors shied away from equities after Federal Reserve officials reaffirmed much tighter monetary policy lies ahead to cool an overheating economy and tame inflation.

Oil prices are up more than 40% this year amid strength in product markets, lower global inventories, and record gasoline prices. US crude data revealed continued market tightness with gasoline inventories falling to the lowest since December and a pickup in demand. “Oil markets remain a volatile trade as crude demand destruction concerns intensify,” said Ed Moya, senior market analyst at Oanda. Despite the recession concerns, the oil market remains tight and fears of large dent in “short-term crude demand outlook is overdone.”

Crude’s outlook has also been clouded as China struggles to contain a wave of Covid-19 infections. While the financial center of Shanghai has begun to emerge from a punishing lockdown, there have been fresh outbreaks in other cities and disruption in Beijing. The country is the world’s largest oil importer.

Oil markets remain in backwardation, a bullish pattern marked by near-term prices trading above longer-dated ones. Brent’s prompt spread — the difference between its two nearest contracts — was $2.24 a barrel in backwardation, compared with $1.46 a week ago.

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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Posted in Fuel News | Comments Off

Market Close: May 18 Down, Diesel DN 13 Cents, Gas DN 22 Cents

May 18th, 2022 by

Fueling Strategy: Please partial fill only this afternoon, Thursday prices will drop 10 cents and then Friday look for fuel to drop another 13 cents  ~ Be Safe

NMEX Crude     $109.59 DN $2.8100
NYMEX ULSD    $3.6681 DN $0.1312
NYMEX Gas      $3.7206 DN $0.2211
NEWS
Oil futures ended lower Wednesday, turning lower despite data showing an unexpected drop in U.S. crude inventories and a further, sharp fall in gasoline supplies.

The turn lower for crude came as an equity market rout dulled sentiment across asset markets perceived as risky.

Price action
  • West Texas Intermediate crude for June delivery fell $2.81, or 2.5%, to close at $109.59 a barrel.
  • July Brent crude, the global benchmark, fell $2.82, or 2.5%, to settle at $109.11 on ICE Futures Europe.
  • Nymex June gasoline dropped 5.6% to end at $3.7206 a gallon.
  • June heating oil shed 3.5% to $3.6681 a gallon.
  • June natural-gas futures rose 0.8% to close at $8.368 per million British thermal units.
What’s driving markets?

The Energy Information Administration said U.S. crude inventories fell by 3.4 million barrels in the week ended May 13, while gasoline stocks fell 4.8 million barrels and distillate supplies rose by 1.2 million barrels. Analysts surveyed by S&P Global Commodity Insights had expected a 2.1 million barrel rise in oil inventories, while gasoline was expected to slip 100,000 barrels and distillates were forecast to drop by 1 million barrels.

The American Petroleum Institute, an industry trade group, reported late Tuesday that U.S. crude oil inventories fell 2.4 million barrels last week , while gasoline stocks fell by 5.1 million barrels, according to a source. Distillate inventories were seen up 1 million barrels. “Despite a 5-million-barrel release from the SPR, higher production and stronger imports, stronger refining activity and crude exports have encouraged a draw to (crude) inventories,” said Matt Smith, lead oil analyst for the Americas at Kpler, in an email.

The crude draw “was joined by a solid drop in gasoline inventories as implied demand climbed back above 9 [million barrels a day] for the first week in 14. Distillate implied demand also showed a minor tick higher but inventories still showed a minor build,” he said. Analysts said the equity market sell off appeared to take the steam out of energy futures. “Data was bullish but with recession fears back in play it seems to not matter.”

U.S. stocks were sharply lower, with the Dow Jones Industrial Average dropping more than 1,100 points, while S&P 500 slid 4%.

Earlier gains in crude prices were tied in part to hopes for easing COVID restrictions in China, the world’s biggest crude importer, said analysts. Optimism around “much higher oil demand and prices” is positive for producers, though harmful for consumer sentiment, wrote Stephen Innes, managing partner at SPI Asset Management, in a note to clients. “And with unaffordable prices at the pump, which are a byproduct of demand exceeding supply, the Fed will be on a mission to raise rates to at least moderate the demand side of the economy, which could eventually filter through to a mild form of demand destruction where there could be a buyer strike rather than buyers splurge over U.S. peak driving season,” he said.

Data in the U.K. on Wednesday showed annual consumer prices climbing to a four-decade high, driven by higher energy prices. Crude has been pushing the upper end of its trading range has prevailed over the past few weeks, noted Ole Hansen, head of commodity strategy at Saxo Bank, in a note to clients on Wednesday. “During the past few weeks, the focus has turned from a range bound crude oil market to the product market where the cost of gasoline, diesel and jet fuel have surged to levels not seen in years, if ever. The combination of refinery maintenance, a post pandemic reduction in capacity as well as self-sanctioning of Russian products have all led to incredible tight markets,” said Hansen.

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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

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Market Close: May 17 Down, Diesel Drops 10.82 Cents

May 17th, 2022 by

Fueling Strategy: Please fuel as needed today BUT please plan on Wednesday’s 1.5 cent drop in prices ~ Be Safe
NMEX Crude     $112.40 DN $1.8000
NYMEX ULSD    $3.7993 DN $0.1082
NYMEX Gas      $3.9417 DN $0.0812
NEWS

Crude fell after the US government announced it plans to allow Chevron Corp. to negotiate its oil license with Venezuela’s national producer.

West Texas Intermediate settled below $113 on Tuesday. The Biden administration is going to calibrate its sanctions policy in a bid to promote dialog with Venezuela, a US official told reporters. The Treasury is allowing Chevron to negotiate its license with PDVSA, but more drilling or an increase in revenue for the regime is not allowed. Futures extended their tumble at the end of the session with Federal Reserve Chair Jerome Powell saying he won’t hesitate to raise rates above neutral if needed.

The proposed changes to alleviate some sanctions against Venezuela “should be seen as positive development, but not be mistaken as providing immediate relief to the tight market we are experiencing in real time,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management.

Oil has rallied more than 50% this year in extremely volatile trading as the war in Ukraine tightened supplies, while demand outside of virus-hit China picked up. Global supplies remain strained with the European Union considering banning Russian crude and OPEC+ standing firmly against accelerating production increases.

Consumers are already feeling the pain at the pump, with prices of transport fuels rising across the globe. US average retail gasoline prices topped $4.50 a gallon for the first time, according to auto club AAA, just a couple of weeks ahead of the summer driving season. That comes amid widespread tightness in oil-product markets across the globe.

The US will suggest tariffs on Russian oil as an alternative to embargoes, Reuters reported, a mechanism designed to keep the country’s supplies on the market while limiting revenues to Moscow. A European Union proposal to ban imports of Russian crude has been delayed amid opposition from Hungary, which said the decision would cost at least $810 million.

In China, meanwhile, Shanghai reported no new Covid-19 infections in the broader community for a third consecutive day, hitting a crucial milestone that authorities have said will allow them to start unwinding punishing restrictions. Still, one part of Beijing’s Fengtai district will lock down in some areas for seven days, underscoring the country’s continued battle with the virus.

US crude stockpiles at a key storage hub in Cushing, Oklahoma, have contracted by about a quarter this year. Holdings at the delivery point for benchmark US futures likely fell by about 2.629 million barrels in the week ended May 13, traders said, citing data from consultant Wood Mackenzie Ltd.

“We are getting into uncharted territory of crude inventories,” said Peter McNally, global sector lead at Third Bridge. “It’s tricky to implement these bans at a time when demand normally picks up and inventories are low.”

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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Posted in Fuel News | Comments Off

Market Close: May 16 Mixed, Diesel Down 1.37 Cents

May 16th, 2022 by

Fueling Strategy: Please fuel as needed tonight, Be Safe

NMEX Crude     $114.20 UP $3.7100
NYMEX ULSD    $3.9075 DN $0.0137
NYMEX Gas      $4.0116 UP $0.0651
NEWS
Besides Chinese demand and European supply issues, traders are also monitoring U.S gasoline stocks. U.S. gasoline futures set an all-time high again on Monday as falling stockpiles fueled supply concerns. Supply is expected to continue to fall and prices rise as traders prepare for the summer driving season.
Bullish Scenario
A sustained move over $105.77 will indicate the presence of buyers. Taking out the intraday high at $109.82 will indicate the buying is getting stronger and could create the upside momentum needed to challenge the main top at $110.07. A trade through $110.07 will reaffirm the uptrend and could trigger an acceleration into the March 7 main top at $116.43.
Bearish Scenario
A sustained move under $105.77 will signal the presence of sellers. This could trigger a sharp break into a series of potential support levels at $102.48, $100.99 and $98.90.
Regarding possible fuel shortages on the east coast. Please find our major suppliers “Location Updates Links” below.
You will notice there’s NO updates presently but we must proactively plan for the worst case scenario so we highly recommend the following fueling strategy for this area:
When heading anywhere towards the eastern side of the country (Georgia, North and South Carolina, Virginia, Maryland, Pennsylvania, New York and New Jersey) ALWAYS go in with your tanks completely full of fuel period – Do NOT Take The Chance (Risk) of Running Out of Fuel! 
* Never assume you can get fuel ahead of you
* Make the extra stop and add fuel to your tanks before heading into this region. 
* Limit Layover Time – Idling your tank burns from 1.0 to 1.25 gallons per hour which can make the difference of getting out the effected area with enough fuel in your tanks.
Location Updates | TravelCenters of America
Loves’s Location Updates

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!

Marketing & Sales: Brian 817-480-2102
 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Posted in Fuel News | Comments Off

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