Aug 17 Fueling Strategy: Prices are up 1/4 cents today, and will continue to correct DOWN another 5 cents Sunday,  Please “PARTIAL FILL OR WAIT SATURDAY, SUNDAY WILL BE TOPPED YOUR TANK DAY”  ~ Be Safe Today

NYEX Crude      $  76.65 DN $1.5100

NYMEX ULSD     $2.3287 DN $0.0492

NYMEX Gas       $2.3102 DN $0.0478

NEWS

NEW YORK, Aug 16 (Reuters) – Oil prices settled down nearly 2% on Friday, little changed on the week with Brent crude below $80 a barrel, as investors tempered expectations of demand growth from top oil importer China. Brent crude futures fell $1.36, or 1.7%, to settle at $79.68 per barrel. U.S. West Texas Intermediate crude futures declined by $1.51, or 1.9%, to $76.65. Last week, Brent crude ended at $79.66 a barrel and WTI closed at $76.84.

On Thursday, data from China showed its economy lost momentum in July, with new home prices falling at the fastest pace in nine years, industrial output slowing and unemployment rising. That has stoked worries among traders about a slump in demand from the top oil importer, where refineries sharply cut crude processing rates last month on tepid fuel demand.

The Organization of the Petroleum Exporting Countries on Monday cut its forecast for this year’s oil demand growth, citing softness in China. The Paris-based International Energy Agency also cited weak demand in China when it slashed its 2025 forecasts on Tuesday.

“It has been a volatile week in oil markets: on one hand you had fears of supply disruptions from a wider Middle East war, but on the other, slowing growth in China forced revisions of demand forecasts,” said Andrew Lipow, president of energy consultancy Lipow Oil Associates.

Oil futures rallied at the start of the week as traders braced for retaliation by Iran against Israel over the slaying of a Hamas leader in Tehran last month. But some of that risk was priced out because Iran has not struck yet, analysts at Commerzbank Research wrote on Friday.

“At least so far, supply disruptions have been more theoretical than actual,” said Brett Friedman, contributor for market data provider OptionMetrics. “That allows the market to focus on the demand side,” Friedman said. A fresh round of Gaza ceasefire talks began on Thursday in Qatar. It has been paused until next week, with involved parties sending mixed signals on progress. “Provided the situation in the Middle East does not escalate further, the oil price is likely to tread water,” the Commerzbank analysts said.

A string of data releases from the U.S. kept a floor under oil prices: retail sales beat analysts’ expectations, and fewer Americans filed new jobless claims last week, sparking renewed optimism around economic growth in the biggest oil market. Oil prices could lack direction until the U.S. Federal Reserve decides whether to cut interest rates at its September meeting, independent oil analyst Gaurav Sharma said.

Low liquidity likely fed price volatility this week as many European and North American investors were still on holiday, UBS analyst Giovanni Staunovo said.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

Aug 23 – Out of Office after 15:00

Aug 30 – Out of Office after 15:00

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Aug 16th Fueling Strategy: Please “FUEL AS NEEDED TODAY/TONIGHT” prices are down 2 cents today but plan Saturday’s prices to go UP 1 cents ~ Be Safe Today!

NYEX Crude      $  78.16 UP $1.1800

NYMEX ULSD     $2.3779 UP $0.0097

NYMEX Gas       $2.3580 UP $0.0369

This morning diesel market is down over 3 cents!

NEWS

Sep WTI crude oil Thursday closed up +1.18 (+1.53%), and Sep RBOB gasoline closed up +3.69 (+1.59%).

Crude oil and gasoline prices closed moderately higher on Thursday.  Stronger-than-expected US jobless claims and retail sales reports Thursday signaled economic strength and were positive for energy demand and crude prices.   Also, Thursday’s rally in the S&P 500 to a 2-week high bolstered confidence in the economic outlook and supported the energy demand outlook and crude prices.  In addition, crude oil has support as risks remain high for a retaliatory attack by Iran against Israel, further escalating Middle East tensions.

Better-than-expected global economic news on Thursday was bullish for energy demand and crude prices.  US July retail sales rose +1.0% m/m, stronger than expectations of +0.4% m/m and the biggest increase in 1-1/2 years.  Also, US weekly initial unemployment claims unexpectedly fell -7,000 to a 5-week low of 227,000, showing a stronger labor market than expectations of an increase to 235,000.  In addition, Japan’s Q2 GDP rose +3.1% q/q annualized, stronger than expectations of +2.3%.

Crude prices have support from fears of an imminent attack by Iran against Israel in response to last month’s assassination of a Hamas leader by Israel in Iran, which could escalate the conflict in the Middle East and disrupt the region’s crude oil supplies.  Israel’s military continues to conduct operations in Gaza, and there is the risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

Signs of weaker US gasoline demand have prompted several US refiners to reduce refining operations, a bearish factor for crude prices.  Marathon Petroleum, the owner of the largest US refinery, said it plans to cut its refining capacity rate to 90% this quarter, the lowest for a Q3 since 2020.  Also, PBF Energy said it was cutting its refining capacity utilization rate to a three-year low, and Phillips 66 said it would cut its capacity rate to a two-year low.

Increased Russian crude production is negative for oil prices after Russia’s Energy Ministry reported last Friday that Russia’s July crude production was 9.045 million bpd, about 67,000 bpd above the output target it agreed to with OPEC+.

An increase in crude oil held worldwide on tankers is bearish for prices.  Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days rose by +12% w/w to 66.11 million bbl in the week ended August 9.

OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies.  On June 2, OPEC+ extended the 2 million bpd of voluntary crude production cuts into Q3 but said they would gradually phase out the cuts over the following 12 months, beginning in October.  OPEC pledged to extend its crude production cap at about 39 million bpd to the end of 2025.  Also, the UAE was given a 300,000 bpd boost to its production target for 2025.  In June, OPEC crude production fell -80,000 bpd to 26.98 million bpd.

Wednesday’s EIA report showed that (1) US crude oil inventories as of August 9 were -4.6% below the seasonal 5-year average, (2) gasoline inventories were -2.6% below the seasonal 5-year average, and (3) distillate inventories were -7.5% below the 5-year seasonal average.  US crude oil production in the week ending August 9 fell -0.7% w/w to 13.3 million bpd, falling back from the record high of 13.4 million bpd from the week of August 2.

Baker Hughes reported last Friday that active US oil rigs in the week ending August 9 rose +3 to 485 rigs, modestly above the 2-1/2 year low of 477 rigs posted in the week ending July 19.  The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

Aug 23 – Out of Office after 15:00

Aug 30 – Out of Office after 15:00

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Aug 13th Fueling Strategy: Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT”  Wednesday prices will JUMP UP 7 Cents ~ Be Safe Today

NYEX Crude      $  80.06 UP $3.2200

NYMEX ULSD     $2.4065 UP $0.0668

NYMEX Gas       $2.4429 UP $0.0526

NEWS

Sep WTI crude oil on Monday closed up +3.22 (+4.19%), and Sep RBOB gasoline closed up +5.26 (+2.20%).Crude oil and gasoline prices surged on Monday, with crude posting a 3-week high and gasoline posting a 1-week high.  Rising geopolitical risks in the Middle East that could disrupt the region’s crude supplies underpin crude prices.  There are fears of an imminent attack against Israel by Iran in response to last month’s assassination of a Hamas leader by Israel in Iran.  Monday’s rally in the S&P 500 to a 1-week high also boosts confidence in the economic outlook, which is positive for energy demand and crude prices.

Crude prices are supported by expectations for a retaliatory attack by Iran against Israel, which could escalate the conflict in the Middle East and disrupt the region’s crude oil supplies.  Iran has threatened to retaliate against Israel for the recent assassination of a Hamas leader in Tehran.  Israel’s military continues to conduct operations in Gaza, and there is the risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

Signs of weaker US gasoline demand have prompted several US refiners to cut back on refining operations, a bearish factor for crude prices.  Marathon Petroleum, the owner of the largest US refinery, said it plans to cut its refining capacity rate to 90% this quarter, the lowest for a Q3 since 2020.  Also, PBF Energy said it was cutting its refining capacity utilization rate to a three-year low, and Phillips 66 said it would cut its capacity rate to a two-year low.

Increased Russian crude production is negative for oil prices after Russia’s Energy Ministry reported last Friday that Russia’s July crude production was 9.045 million bpd, about 67,000 bpd above the output target it agreed to with OPEC+.

An increase in crude oil held worldwide on tankers is bearish for prices.  Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days rose by +12% w/w to 66.11 million bbl in the week ended August 9.

OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies.  On June 2, OPEC+ extended the 2 million bpd of voluntary crude production cuts into Q3 but said they would gradually phase out the cuts over the following 12 months, beginning in October.  OPEC pledged to extend its crude production cap at about 39 million bpd to the end of 2025.  Also, the UAE was given a 300,000 bpd boost to its production target for 2025.  In June, OPEC crude production fell -80,000 bpd to 26.98 million bpd.

Last Wednesday’s EIA report showed that (1) US crude oil inventories as of August 2 were -5.6% below the seasonal 5-year average, (2) gasoline inventories were -2.0% below the seasonal 5-year average, and (3) distillate inventories were -6.5% below the 5-year seasonal average.  US crude oil production in the week ending August 2 rose +0.8% w/w to a new record high of 13.4 million bpd.

Baker Hughes reported last Friday that active US oil rigs in the week ending August 9 rose +3 to 485 rigs, modestly above the 2-1/2 year low of 477 rigs posted in the week ending July 19.  The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

Aug 23 – Out of Office after 15:00

Aug 30 – Out of Office after 15:00

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Aug 10th Fueling Strategy: Please, if possible, “WAIT TO FUEL”  Sunday prices will drop 2 cents~ Be Safe

NYEX Crude      $  76.84 UP $.6500

NYMEX ULSD     $2.3397 DN $.0181

NYMEX Gas       $2.3903 DN $.0089

NEWS

Sep WTI crude oil on Friday closed up +0.65, and Sep RBOB gasoline (RBU24) closed down -0.89 (-0.37%). Crude oil and gasoline prices on Friday settled mixed.  A weaker dollar Friday was supportive of energy prices.  Strength in stocks Friday also boosted confidence in the economic outlook, which is positive for energy demand and crude prices.  

In addition, concerns that tensions in the Middle East could escalate and disrupt crude supplies are underpinning crude prices as Iran has vowed to retaliate against Israel for last week’s assassination of a Hamas leader in Tehran.  An increase in Russian crude production that boosts global oil supplies limited gains in crude.

Reduced crude production in Libya limits global crude supplies and is bullish for prices.  Libya’s Sharara oil field, the country’s biggest, has halted 250,000 bpd of crude production since Monday due to protestors and security concerns. Russia’s Energy Ministry reported today that Russia’s July crude production was 9.045 million bpd, about 67,000 bpd above the output target it agreed to with OPEC+.

Crude prices are supported by expectations for a retaliatory attack by Iran against Israel, which could escalate the conflict in the Middle East and disrupt the region’s crude oil supplies.  Iran has threatened to retaliate against Israel for last week’s assassination of a Hamas leader in Tehran.  Israel’s military continues to conduct operations in Gaza, and there is the risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

A plunge in crude oil held worldwide on tankers is bullish for prices.  Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -31% w/w to 56.66 million bbl in the week ended August 2, the lowest in more than four years.

OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies.  On June 2, OPEC+ extended the 2 million bpd of voluntary crude production cuts into Q3 but said they would gradually phase out the cuts over the following 12 months, beginning in October.  OPEC pledged to extend its crude production cap at about 39 million bpd to the end of 2025.  Also, the UAE was given a 300,000 bpd boost to its production target for 2025.  In June, OPEC crude production fell -80,000 bpd to 26.98 million bpd.

Wednesday’s EIA report showed that (1) US crude oil inventories as of August 2 were -5.6% below the seasonal 5-year average, (2) gasoline inventories were -2.0% below the seasonal 5-year average, and (3) distillate inventories were -6.5% below the 5-year seasonal average.  US crude oil production in the week ending August 2 rose +0.8% w/w to a new record high of 13.4 million bpd.

Baker Hughes reported Friday that active US oil rigs in the week ending August 9 rose +3 rigs to 485 rigs, modestly above the 2-1/2 year low of 477 rigs posted in the week ending July 19.  The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

Aug 23 – Out of Office after 15:00

Aug 30 – Out of Office after 15:00

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

July 09th Fueling Strategy: Prices are UP 6 cents this morning and Saturday look for a slight bump up, Please, if possible, partial fill only today or wait to fuel, Be Safe Today

NYEX Crude      $  76.19 UP $.9600

NYMEX ULSD     $2.3578 UP $.0022

NYMEX Gas       $2.3992 UP $.0419

NEWS

Sep WTI crude oil on Thursday closed up +0.96 (+1.28%), and Sep RBOB gasoline closed up +4.19 (+1.78%).

Crude oil and gasoline prices posted moderate gains on Thursday.  Crude oil prices rallied on reduced US recessionary fears after weekly jobless claims fell more than expected.   Crude prices also had carryover support from Wednesday when weekly EIA crude inventories fell more than expected to a 6-month low.  In addition, strength in stocks Thursday boosted confidence in the economic outlook, which was positive for energy demand and crude prices.  Strength in the dollar on Thursday limited gains in crude prices.

Crude prices are supported by expectations for a retaliatory attack by Iran against Israel, which could escalate the conflict in the Middle East and disrupt the region’s crude oil supplies.  Iran has threatened to retaliate against Israel for last week’s assassination of a Hamas leader in Tehran.  Israel’s military continues to conduct operations in Gaza, and there is the risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

Reduced crude production in Libya limits global crude supplies and is bullish for prices.

Libya’s Sharara oil field, the country’s biggest, has halted 250,000 bpd of crude production since Monday due to protestors and security concerns.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

Aug 09 – Out of Office Limited Access to email

Aug 23 – Out of Office after 15:00

Aug 30 – Out of Office after 15:00

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

July 08th Fueling Strategy: Prices are down slightly today, Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT” ahead of Friday’s price JUMP UP 6 Cents ~ Be Safe Today

NYEX Crude      $  75.23 UP $2.0300

NYMEX ULSD     $2.3556 UP $0.0598

NYMEX Gas       $2.3573 UP $0.0314

NEWS

Sep WTI crude oil on Wednesday closed up +2.03, and Sep RBOB gasoline closed up +3.11 (+1.34%).

Crude oil and gasoline prices posted moderate gains Wednesday.  Crude oil prices rose Wednesday on concern that an expected retaliatory attack by Iran against Israel could spark an escalation of Middle Eastern hostilities.  Crude prices added to their gains Wednesday after weekly EIA crude inventories fell more than expected to a 6-month low.  Dollar strength on Wednesday limited gains in energy prices.

Crude prices are supported by fears of a retaliatory attack by Iran against Israel, which could escalate the conflict in the Middle East and disrupt the region’s crude oil supplies.  Iran has threatened to retaliate against Israel for last week’s assassination of a Hamas leader in Tehran.  Israel’s military continues to conduct operations in Gaza, and there is the risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

Global economic news Wednesday was weaker than expected and bearish for energy demand and crude prices.   China’s July exports rose +7.0% y/y, weaker than expectations of +9.5% y/y and a bearish factor for global growth.  Also, German June exports fell -3.4% m/m, weaker than expectations of -1.5% m/m and the biggest decline in 6 months.  In addition, Japan’s June leading index CI fell -2.6 to a 14-month low of 108.6, weaker than expectations of 108.8.

A plunge in crude oil held worldwide on tankers is bullish for prices.  Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -31% w/w to 56.66 million bbl in the week ended August 2, the lowest in more than four years.

OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies.  On June 2, OPEC+ extended the 2 million bpd of voluntary crude production cuts into Q3 but said they would gradually phase out the cuts over the following 12 months, beginning in October.  OPEC pledged to extend its crude production cap at about 39 million bpd to the end of 2025.  Also, the UAE was given a 300,000 bpd boost to its production target for 2025.  In June, OPEC crude production fell -80,000 bpd to 26.98 million bpd.

Wednesday’s weekly EIA report was mixed for crude and products.  On the bullish side, EIA crude inventories fell -3.73 million bbl to a 6-month low, a larger draw than expectations of a decline of -1.8 million bbl.  Conversely, EIA gasoline supplies unexpectedly rose +1.34 million bbl versus expectations of a -1.8 million bbl draw.  Also, US crude production in the week ended August 2 rose +0.8% w/w to a record 13.4 million bpd.  In addition, crude stockpiles at Cushing, the delivery point for WTI crude, rose +579,000 bbl.

Wednesday’s EIA report showed that (1) US crude oil inventories as of August 2 were -5.6% below the seasonal 5-year average, (2) gasoline inventories were -2.0% below the seasonal 5-year average, and (3) distillate inventories were -6.5% below the 5-year seasonal average.  US crude oil production in the week ending August 2 rose +0.8% w/w to a new record high of 13.4 million bpd.

Baker Hughes reported last Friday that active US oil rigs in the week ending August 2 were unchanged at 482 rigs, modestly above the 2-1/2 year low of 477 rigs posted in the week ending July 19.  The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Please, If possible, don’t fuel today or “PARTIAL FILL ONLY TODAY/TONIGHT”  Prices are down but will go down another 2 cents Wednesday~ Be Safe

NYEX Crude      $  72.94 DN $.5800

NYMEX ULSD     $2.2986 DN $.0199

NYMEX Gas       $2.3336 UP $.0160

NEWS

Sep WTI crude oil on Monday closed down -0.58 (-0.79%), and Sep RBOB gasoline closed up +1.60 (+0.69%).Crude oil and gasoline prices Monday were under pressure, as crude posted a 6-month nearest-futures low and gasoline posted a 5-month low.  Monday’s slump in global equity markets sparked long liquidation of risk assets and undercut energy prices.  Also, Monday’s selloff in the S&P 500 to a 3-month low undercuts confidence in the economic outlook and energy demand and is bearish for crude prices.

However, crude prices recovered from their worst levels on Monday, and gasoline pushed into positive territory after the dollar index dropped to a 6-3/4 month low.  Also, concern about the escalation of conflict in the Middle East that could disrupt the region’s crude supplies is supportive for crude prices after Iran threatened to retaliate against Israel for last week’s assassination of a Hamas leader in Tehran.

Crude prices also found support Monday on reduced crude output from Libya after the Sharara oil field, Libya’s biggest, halted crude production due to anti-government protests and security concerns. The Sharara oil field was producing 270,000 bpd before it was shut down. Monday’s global economic news was mixed for energy demand and crude prices.  

On the negative side, the Eurozone Aug Sentix investor confidence index fell -6.6 to a 7-month low of -13.9, weaker than expectations of -8.0.  Also, the Japan Jul Jibun Bank services PMI was revised downward by -0.2 to 53.7 from the previously reported 53.9.  On the bullish side, the US Jul ISM services index rose +2.6 to 51.4, stronger than expectations of 51.0.  Also, the Eurozone Jul S&P composite PMI was revised upward by +0.1 to 50.2 from the previously reported 50.1.

Crude oil prices have underlying support from the Hamas-Israel conflict.  Israel’s military continues to conduct operations in Gaza, and there is the continued risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

A plunge in crude oil held worldwide on tankers is bullish for prices.  Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -31% w/w to 56.66 million bbl in the week ended August 2, the lowest in more than four years.

OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies.  On June 2, OPEC+ extended the 2 million bpd of voluntary crude production cuts into Q3 but said they would gradually phase out the cuts over the following 12 months, beginning in October.  OPEC pledged to extend its crude production cap at about 39 million bpd to the end of 2025.  Also, the UAE was given a 300,000 bpd boost to its production target for 2025.  In June, OPEC crude production fell -80,000 bpd to 26.98 million bpd.

Last Wednesday’s EIA report showed that (1) US crude oil inventories as of July 26 were -4.4% below the seasonal 5-year average, (2) gasoline inventories were -3.3% below the seasonal 5-year average, and (3) distillate inventories were -6.6% below the 5-year seasonal average.  US crude oil production in the week ending July 26 was unchanged w/w and matched a record high of 13.3 million bpd.

Baker Hughes reported last Friday that active US oil rigs in the week ending August 2 were unchanged at 482 rigs, modestly above the 2-1/2 year low of 477 rigs posted in the week ending July 19.  The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.
 

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Aug 03 Fueling Strategy: Prices are down 4 cents today, and will continue to correct DOWN another 8 cents Sunday,  Please “PARTIAL FILL OR WAIT UNTIL SUNDAY TOPPED YOUR TANKS”  ~ Be Safe Today

NYEX Crude      $  73.52 DN $2.7900

NYMEX ULSD     $2.3185 DN $0.0879

NYMEX Gas       $2.3760 DN $0.0804

NEWS

HOUSTON Aug 2 (Reuters) – Oil prices fell on Friday, settling at their lowest since January after data showed the U.S. economy added fewer jobs than expected last month, and weak Chinese economic data added more pressure. Brent crude futures settled down $2.71, or 3.41%, to $76.81 a barrel. U.S. West Texas Intermediate crude futures settled down $2.79, or 3.66%, at $73.52. At their session lows, both benchmarks fell by more than $3 per barrel.

U.S. job growth slowed more than expected in July and unemployment increased to 4.3%, pointing to raising fears of a possible recession. “We moved from a demand-driven market to a geopolitical one for maybe two days then we absolutely nosedived on all this economic data,” said Tim Snyder, chief economist at Matador Economics.

Economic data from top oil importer China and surveys showing weaker manufacturing activity across Asia, Europe and the U.S. raised the risk of a sluggish global economic recovery that would weigh on oil consumption. Falling manufacturing activity in China also inhibited prices, adding to concerns about demand growth after June data showed imports and refinery activity lower than a year earlier. Asia’s crude imports in July fell to their lowest in two years, sapped by weak demand in China and India, data from LSEG Oil Research showed.

Meanwhile, OPEC oil output rose in July, a Reuters survey found, as a rebound in Saudi Arabian supply and small increases elsewhere offset the impact of ongoing voluntary supply cuts by other members and the wider OPEC+ alliance. The Organization of the Petroleum Exporting Countries pumped 26.70 million barrels per day (bpd) last month, up 100,000 bpd from June, according to the survey based on shipping data and information from industry sources. An OPEC+ meeting on Thursday had left the group’s oil output policy unchanged, including a plan to start unwinding one layer of production cuts from October.

Oil investors are also watching the Middle East, where Lebanon’s Iran-backed group Hezbollah said its conflict with Israel had entered a new phase. Still, analysts noted no material disruption of oil supplies from the region as prices slumped to multi-week lows days after the killing of senior leaders of Iran-aligned militant groups Hamas and Hezbollah stoked fears of all-out war.

“Oil has been pumped up on just extraordinary jitters over the Middle East situation but here we are several days after a significant event,” said John Kilduff, partner at Again Capital in New York.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

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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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Aug 02 Fueling Strategy: Please, If possible, “PARTIAL FILL ONLY TODAY/TONIGHT” Saturday prices will DROP 3 Cents ~ Be Safe

NYEX Crude      $  76.31 DN $1.6000

NYMEX ULSD     $2.4064 DN $0.0319

NYMEX Gas       $2.3980 DN $0.0445

NEWS 

Sep WTI crude oil on Thursday closed down -1.60 (-2.05%), and Sep RBOB gasoline closed down -4.45 (-1.82%). 

Crude oil and gasoline prices on Thursday fell back from 1-1/2 week highs and posted moderate losses on global energy demand concerns after the US Jul manufacturing index contracted by the most in 8 months and the China Jul Caixin manufacturing index contracted by the most in 9 months.  A stronger dollar on Thursday was also bearish for energy prices.  Losses in crude accelerated Thursday as the stock market retreated.

Crude prices Thursday initially moved higher on the escalation of geopolitical tensions in the Middle East that could lead to a disruption of the region’s crude supplies after Iran’s Supreme leader Ayatollah Ali Khamenei said that Iran plans to retaliate against Israel for killing a Hamas leader in Tehran.  Crude also has carryover support from Wednesday when weekly EIA crude inventories fell more than expected to a 5-3/4 month low.

Thursday’s global economic news was bearish for energy demand and crude prices.  US weekly initial unemployment claims rose +14,000 to a nearly 1-year high of 249,000, showing a weaker labor market than expectations of 236,000.  Also, the US Jul ISM manufacturing index unexpectedly fell -1.7 to 46.88, weaker than expectations of an increase to 48.8 and the steepest pace of contraction in 8 months.  

In addition, the China Jul Caixin manufacturing PMI fell -2.0 to 49.8, the steepest pace of contraction in 9 months.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Fueling Strategy: Prices are down 4 cents today, Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT” ahead of Friday price JUMP UP 8 Cents ~ Be Safe Today

NYEX Crude      $  77.91 UP $3.1800

NYMEX ULSD     $2.4155 UP $0.0787

NYMEX Gas       $2.4820 UP $0.0949

NEWS

Sep WTI crude oil on Wednesday closed up +3.18 (+4.26%), and Sep RBOB gasoline closed up +9.82 (+4.19%).Crude oil prices Wednesday rallied sharply.  

Wednesday’s fall in the dollar index to a 1-1/2 week low was bullish for energy prices.  Crude is also climbing on increased geopolitical tensions in the Middle East that could lead to a disruption of the region’s crude supplies after Israel launched an airstrike in Iran that killed a Hamas leader and an airstrike in Beirut that killed a Hezbollah leader.   Iranian Supreme leader Ayatollah Ali Khamenei said he had a “duty to seek vengeance” and that Israel should prepare for “severe punishment.”  

Crude prices extended their gains after weekly EIA crude inventories fell more than expected to a 5-3/4 month low.  Wednesday’s global economic news mixed for energy demand and crude prices.  On the positive side, US Jun pending home sales rose +4.8% m/m, stronger than expectations of +1.5% m/m and the biggest increase in 6 months.  

Also, Japan Jun retail sales rose +0.6% m/m and +3.7% y/y, stronger than expectations of +0.2% m/m and +3.2% y/y.  On the negative side, the US Jul ADP employment change rose +122,000, weaker than expectations of +150,000 and the smallest increase in 6 months.  Also, the BOJ cut its 2024 Japan GDP forecast to 0.6% from 0.8% Crude oil prices have underlying support from the Hamas-Israel conflict.  Israel’s military continues to conduct operations in Gaza, and there is the continued risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran.  

Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

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 31-years of Service Excellence”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford