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Fueling Strategy: Please have tanks completely full of fuel tonght before 23:00 CST due to Saturday prices will go up another 8 cents then Sunday prices will continue UP 3.50 cents ~ Be Safe
NMEX Crude     $ 92.09 DN $2.2500
NYMEX ULSD    $3.5178 UP $0.0338
NYMEX Gas      $3.0715 UP $0.0012
NEWS
Oil declined Friday but still posted a weekly gain as traders weighed the prospects of higher demand this winter against the potential for Iranian supply to return.

West Texas Intermediate futures ended the week 3.5% higher after losing 2.4% Friday. Iran said it could accept a European Union-brokered nuclear deal if it receives certain guarantees. The prospect of more oil supply wiped out all gains earlier in the session. Crude has been whipsawed by a flurry of both bearish and bullish headlines in recent days. Yet cooling inflation that may ease the pace of interest-rate hikes by the Federal Reserve has supported commodities broadly. “My view is we move higher,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “Demand numbers in the US were better and we have priced in a lot of negative demand adjustments into the market at this point,” she added.

The International Energy Agency this week raised its forecast for global demand growth, which has supported prices. On the other hand, the Organization of Petroleum Exporting Countries expects the global market to tip into a surplus this quarter, and trimmed forecasts for the amount of crude it will need to pump.

And while many analysts and traders believe the prospect of an Iran nuclear deal has not been priced into the market yet, the likelihood of an agreement is increasing. Both sides, the US and Iran, have made enough incremental progress for a shift in the base case expectations for the timing of a deal from the first quarter of 2023 to the fourth quarter of 2022, Rapidan Energy Group said in a note.  “The oil balance will be close to impossible to reliably predict,” given the array of wildcards in the market at the moment, said Tamas Varga, an analyst at PVM Oil Associates Ltd.

Though prices have rallied this week, options markets are telling a different story. Traders are paying the biggest premium for bearish put options over bullish calls since February. That gauge — known as the put skew — has grown steadily since concerns about the strength of the global economy have intensified.

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!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Market Close: Aug 11 Up

Fueling Strategy: Please have completely full of fuel before 23:00 CST due to Friday prices will go UP 8 cents, then Saturday prices will go up another 8 cents ~ Be Safe

NMEX Crude     $ 94.34 UP $2.4100
NYMEX ULSD    $3.4840 UP $0.0737
NYMEX Gas      $3.0715 UP $0.0012
NEWS
Oil gained after the International Energy Agency boosted its forecast for global demand growth this year, easing concerns about consumption.

West Texas Intermediate futures settled 2.6% higher to trade above $94 a barrel while Brent again neared $100. The IEA lifted its consumption estimate by 380,000 barrels a day, saying soaring natural gas prices and heat waves are prompting manufacturers and power generators to switch their fuel to oil.

Buffeted by bullish and bearish headlines, crude has been largely rangebound near a six-month low. A brief halt of Russian flows to some parts of Europe and weaker-than-expected US inflation data pushed prices higher. The subsequent resumption of Russian supply — as well as renewed attempts to resurrect the Iranian nuclear deal — have since weighed on the market.

“It looks like demand worries might be a bit overdone, and extremely high gas prices will support oil demand during winter with gas-to-oil switching,” said Helge Andre Martinsen, a senior oil analyst at DNB Bank ASA.

In the US, average retail pump prices dropped below $4 a gallon after peaking at a record above $5 in mid-June, according to data from auto club AAA. The decline may be brief. Retail gasoline may surge back above $5 and Brent oil futures could go as high as $130, Damien Courvalin, Goldman’s head of energy research, said in a Bloomberg Television interview.

Still, there are signs of weakness in the futures market. It’s most evident in a narrowing of closely watched time differentials. WTI’s prompt spread — the gap between its two nearest contracts — has shrunk to about 87 cents a barrel in backwardation, down from $2.88 a month ago. The comparable measure for global benchmark Brent was $1.34, down by about two-thirds during the same period.

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!

 
“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, Tonight It’s very important to have your tanks topped out before 23:00 CST due to Thursday AM wholesale prices will jump up 15 to 16 cents then Friday look for prices to go UP another 7 to 8 cents  ~ Be Safe

NMEX Crude     $ 91.93 UP $1.4300
NYMEX ULSD    $3.4103 UP $0.0765
NYMEX Gas      $3.0703 UP $0.1101
NEWS

Oil settled at the highest level in a week on signs of cooling inflation and a weakening dollar.

West Texas Intermediate topped $91 a barrel in New York after the US reported inflation rose at a slower-than-expected pace, potentially relieving pressure on the Federal Reserve to raise interest rates further. Later in the session, a slumping US dollar helped to lift commodities broadly, while government data showed that weekly US gasoline demand had improved after inventories sank below the 10-year seasonal average. Global supply concerns eased somewhat Wednesday, with Russians pipeline operator Transneft PGSC resuming flows on the Druzhba pipeline and US crude inventories rising along with production.

Oil has lost a quarter of its value since a March peak, hitting a six-month low last week on signs that demand was weakening, especially for US gasoline. The cooler Consumer Price Index data helped markets broadly rally, allaying some of the concerns around a global growth slowdown and higher interest rates. A drop in consumer prices may have boosted demand among US drivers. US implied gasoline demand jumped 6.81%, according to the latest report from the US Energy Information Administration, bringing the four-week average up 3.08% from the previous week and above the same week for 2020. Crude inventories rose by more than 5 million barrels last week as weekly production climbed to the highest since April 2020.  “Crude demand isn’t roaring here and as production nears the return to pre-pandemic levels, the oil market isn’t looking so tight anymore,” said Ed Moya, senior market analyst at Oanda.

Traders are also set for a barrage of data in the coming days. Both the Organization of Petroleum Exporting Countries and the International Energy Agency are set to issue their monthly snapshots on Thursday.

 

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!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please partial fill only today/tonight, Wednesday prices will fall 3.5 cents BUT it’ll be very important to keep your tanks topped and completely full of fuel tomorrow night before 23:00 CST, Thursday wholesale prices will jump up 15 to 16 cents ~ Be Safe
NMEX Crude     $ 90.50 DN $.2600
NYMEX ULSD    $3.3338 UP $.1547
NYMEX Gas      $2.9602 UP $.0740
NEWS

Oil futures ended slightly lower Tuesday, reversing earlier gains, on indications that Russian crude shipments via the southern leg of a major pipeline to Europe may resume in a few days after being suspended.

Benchmarks Brent and West Texas Intermediate crude slipped after swinging about 2% in each direction earlier in the session. Russia’s Transneft said Ukraine halted flows through its Druzhba pipeline toward Hungary, the Czech Republic and Slovakia on Aug. 4 as sanctions blocked payment of Moscow’s transit fee. That section of the network usually carries about 250,000 barrels a day, Transneft data show.

Flows via Druzhba’s northern leg, which supplies Germany and Poland, remain unaffected, Transneft said, adding that the company is working on alternative options for the transfer of funds.

Futures have been volatile in recent days, staying true to typically thin-volume summer trading. The disruption to Russian oil supplies is a reminder of the risks to production in a market that’s been grappling with scant spare capacity. Yet prices also fell to the lowest since February last week on global economic growth concerns. Weakness in equity markets also limited oil’s gains.

The halt in Russian flows “is a reminder of the global supply fragility,” said John Kilduff, founder and CEO of Again Capital. “Concerns over the global economy remain a significant headwind, however. There is no room for error, in terms of supplies, or additional disruptions,” he added.

Avenues for incremental supply additions continue to look restricted. The US government lowered its estimated crude oil production forecast for 2023 slightly on Tuesday.

Also weighing on trading is the potential return of Iranian oil to the market. The US and Iran have just weeks to decide whether they want to revive their nuclear deal, after European Union diplomats presented parties with a final draft accord.

China’s imports of commodities in July offered some tentative signs of a demand recovery after the sharp slump earlier this year, but analysts said annual import levels are still depressed.

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!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please fuel as needed today/tonight ~ Be Safe

NMEX Crude     $ 90.76 UP $1.7500
NYMEX ULSD    $3.1791 DN $0.0368
NYMEX Gas      $2.8862 UP $0.0306
Fueling Strategy: Please partial fill only tonight, Saturday prices will drop almost 8 cents then Sunday look for another 12 cents drop in prices ~ Be Safe

NMEX Crude     $ 89.01 UP $.4700
NYMEX ULSD    $3.2159 DN $.1213
NYMEX Gas      $2.8556 UP $.0621
NEWS

Oil posted the biggest weekly decline since early April on growing signs that a global economic slowdown is curbing demand. Prices are near the lowest level in six months.

West Texas Intermediate settled at $89 a barrel, ending the week nearly 10% lower. US gasoline consumption has dropped, stoking demand concerns, while low liquidity has added to volatility. Supplies from Libya also picked up, helping to shrink key oil futures time-spreads and ease the tightness in the market.

The pullback is evident across the oil market. Gasoline futures are down 18% this week. Meanwhile, physical oil differentials have narrowed and Brent’s prompt spread — the difference between its two nearest contracts and a gauge of supply — shrunk to $1.73 a barrel in backwardation, down from more than $6 a week ago.

“Crude broke several technical levels in a week that has been a bloodbath for super-cycle believers,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “The action, however, indicates that this was more of a buyers’ strike than meaningful position reduction, as buyers are content to sit on the sidelines until the broader narrative around demand improves.”

After surging in the first five months of the year, crude’s rally has been thrown into reverse, with losses deepening this month after declines in June and July. The selloff, which has been exacerbated by below-average trading volumes, may alleviate some of the inflationary pressures coursing through the global economy that have spurred central banks including the US Federal Reserve to hike rates.

The shift to tighter monetary policy has stoked concern among investors that growth will slow, imperiling the outlook for energy usage. The Bank of England warned that the UK is heading for more than a year of recession as it raised borrowing costs, while in the US, a procession of Federal Reserve speakers pledged to continue an aggressive fight to cool inflation.

China has also shown signs of weakness, clouding the outlook for crude consumption in the top importer. Recent data showed factory activity shrank, while China Beige Book International warned the economy was deteriorating.

Still, there were some signs of bullishness with Saudi Arabia this week boosting its prices, and OPEC+ warning of scant spare capacity. Saudi Aramco increased its Arab Light grade for next month’s shipments to Asian refineries to a record $9.80 a barrel above the Middle Eastern benchmark. Traders and refiners had expected an even bigger jump.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581

Market Close: Aug 04 Down

Fueling Strategy: Please before 23:00 CST have your tanks completely full of fuel due to Friday prices will go UP 3.5 cents, the good news is Saturday we’ll see prices drop almost 8 cents ~ Be Safe

NMEX Crude     $ 88.54 DN $2.1200
NYMEX ULSD    $3.3372 DN $0.0776
NYMEX Gas      $2.7935 DN $0.1187
NEWS

Oil extended declines to the lowest in almost six months as weaker US gasoline demand and recessionary fears weighed on markets.

West Texas Intermediate fell 2.3% to $88.54 a barrel, a level last seen in the weeks leading up to Russia’s invasion of Ukraine. This week’s descent was touched off by government data showing Americans are driving less than they did in the summer of 2020. Fears of an economic slowdown have intensified along with the potential impacts on crude demand.

Prices falling below $90 a barrel “is quite remarkable given how tight the market remains and how little scope there is to relieve that,” said Craig Erlam, senior market analyst at Oanda. “But recession talk is getting louder and should it become reality, it will likely address some of the imbalance. Just not in the way we’d like.”

Crude has now given up all the gains triggered by Russia’s invasion of Ukraine in February. Since peaking at more than $130 a barrel in March, the US benchmark has been dragged lower by signs that Moscow is still getting its cargoes onto the global market and escalating investor concerns that a global slowdown will erode energy consumption.

Despite the recent price weaknesses, Saudi Arabia raised its oil prices for buyers in Asia to a record level, a sign the world’s largest exporter sees the region’s market remaining tight. OPEC+ agreed to boost supply by a meager 100,000 barrels a day in September, while issuing a stark warning on “severely limited” spare capacity.

The oil market continues to be in backwardation, a bullish pattern in which near-term contracts are trading higher than later-dated ones, yet key differentials have narrowed. WTI’s nearest backwardation fell below $1 a barrel this week for the first time since April, signaling that underlying physical tightness is easing off as the peak summer driving season is coming to an end.

The extremely modest output increase from OPEC+ came despite a visit by Joe Biden to Saudi Arabia last month, when the US president urged producers to add supplies as part of his efforts to rein in high fuel costs. Still, retail gasoline prices have fallen almost $1 a gallon since hitting a record in mid-June, which will alleviate some of the administration’s political concerns.

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
Fueling Strategy: Please partial fill ONLY tonight due to Thursday prices will fall 6 cents then Friday prices will go up 3.5 cents ~ Be Safe
NMEX Crude     $ 90.76 DN $3.7600
NYMEX ULSD    $3.4148 UP $0.0344
NYMEX Gas      $2.9122 DN $.1445  New Month
NEWS

Oil plunged after a US inventory report signaled slowing demand and the Organization of Petroleum Exporting Countries agreed to a small production increase in September.

West Texas Intermediate futures fell 4% to settle at $90.66 a barrel, the lowest level since early February, before Russia invaded Ukraine. A bearish government report dragged prices lower as crude stockpiles rose by more than 4 million barrels, while the four-week seasonal average for gasoline demand fell below the 2020 level. The data arrived after OPEC and its allies cited the prospect of slowing demand in its decision to lift supply by just 100,000 barrels a day, a tiny fraction of the group’s overall production and a far smaller increase than it has added in recent months. Delegates said they are concerned that a potential recession in the US and Covid-19 lockdowns in China will sour demand.

Motor gasoline supplied figures have been closely watched by the market to get a read on where consumption stands, said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “There had been hopes after last week’s data that soft July demand data was reversing,” said Babin. “This week’s release will keep buyers on hold.”

OPEC’s muted additions to global supply come as oil settled at the lowest in six months, giving back all of crude’s gains since Russia began its war. At the same time, investors continue to fret about a global economic slowdown and signs that some of the extreme strength in crude markets over recent months may be easing. “The announced increase from OPEC+ equates to a nonevent,” said Stacey Morris, head of energy research at VettaFi. “The amount is so modest that it is a rounding error for global oil markets,” she added, noting that the market remains “hypersensitive” to supply and demand dynamics and that volatility would continue.

The unwinding of prices was also seen further down the futures curve as WTI’s prompt-spread, a gauge of supply and demand fundamentals, traded below $1 a barrel for the first time since April. The spread narrowed as crude inventories at Cushing, Oklahoma, the nation’s largest stockpile hub, rose for a fifth week.

Meanwhile, Enrique Mora, the European Union envoy to talks to revive the 2015 nuclear deal between Iran and world powers, is heading to Vienna to discuss the accord, he said on Twitter. While resumption of the nuclear deal could see more Iranian oil hit the market by easing sanctions on the country, the participants have failed to reach an agreement despite months of negotiations.

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
Fueling Strategy: Please partial fill only today/tonight, Wednesday wholesale prices will fall 10 cents then another 5 to 6 cents Thursday~ Be Safe
NMEX Crude     $ 94.42 UP $.5300
NYMEX ULSD    $3.3804 DN $.0596
NYMEX Gas      $2.7826 UP $.0396
NEWS
OPEC’s crude production rose to a two-year high last month as Persian Gulf members followed through on a pledge to relieve tight global markets. The Organization of Petroleum Exporting Countries added 270,000 barrels a day in July, with group leader Saudi Arabia accounting for about two-thirds of the increase, according to a Bloomberg survey. OPEC and its partners have agreed to accelerate the return of the last of the supplies halted during the Covid-19 pandemic, as peak summer demand and global output disruptions push fuel prices to levels that threaten the global economy. The alliance meets on Wednesday to consider its next move.

While US President Joe Biden said he expected “further steps” from the Saudis after visiting the kingdom last month, Riyadh has been circumspect about its plans. Several OPEC+ delegates said the group may keep production steady when it calibrates September levels this week, conserving spare capacity in case it’s needed later. The survey indicates that Middle East members have done what they can to help so far. Saudi Arabia bolstered output by 180,000 barrels day to 10.78 million barrels a day in July, the highest since April 2020, and a level rarely seen in the kingdom’s decades as an oil exporter. The United Arab Emirates and Kuwait also added substantial volumes, the survey showed. Abu Dhabi raised output to 3.24 million barrels a day, or 113,000 a day more than permitted under the OPEC+ deal. Libya appeared to be on a tentative path to recovery following an aggreement to reopen its ports.

Off Target

The extra slug of crude from the Gulf helped compensate for setbacks elsewhere. The total 270,000-barrel-a-day hike represents about two-thirds of the increase OPEC should have made, according to its deal to fast-track the restart of offline supplies. Hobbled by inadequate investment, political instability and sanctions, most OPEC+ nations are lagging far behind their targets. Angola and Nigeria — two members suffering the most acute supply shortfalls — saw their output decline again in July, as did Iran, which remains locked in stalled nuclear talks to ease US sanctions on its energy trade. Whether the Persian Gulf heavyweights are prepared to do more to compensate for their struggling counterparts is unclear.

Delegates remain concerned by the threat to oil demand from a potential recession in the US, and the lingering impact of Covid-19 lockdowns in China. Holding output steady would also avoid a rupture with Russia, a critical member of the OPEC+ alliance, which faces oil sanctions over its invasion of Ukraine.

Bloomberg’s survey is based on ship-tracking data, information from officials and estimates from consultants including Rystad Energy AS, Kpler Ltd. and Rapidan Energy Group.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“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, prices are up 13 cents but will drop 3 cents Saturday, Sunday look for wholesale prices to go down 6 cents  ~ Be Safe
NMEX Crude     $ 98.62 UP $2.2000
NYMEX ULSD    $3.6247 DN $0.0616
NYMEX Gas      $3.4881 UP $0.0235
Have a Great Day,
UPCOMING OUT OF OFFICE DATES: 
Thursday, July 28, 2022 – August 01, 2022
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!

 
“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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