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Market Close: Sep 23 Down, Diesel Down 17.44 Cents

Fueling Strategy: Please have your tanks topped tonight before 23:00 CST, Saturday prices will jump UP 8 cents then Sunday prices will drop 18 cents – Be Safe
NMEX Crude     $ 78.74 DN $4.7500
NYMEX ULSD    $3.2371 DN $0.1744
NYMEX Gas      $2.3830 DN $0.1327
NEWS
Oil posted its longest stretch of weekly losses this year as central banks around the world stepped up the fight against inflation at the cost of economic growth.

West Texas Intermediate settled below $79 a barrel on Friday for the first time since January and declined for a fourth straight week. The Federal Reserve this week gave its clearest signal  yet that it’s willing to tolerate a US recession as the trade-off for regaining control of inflation, while the UK, Norway and South Africa also raised rates. “The fears of a hard landing for the US economy and across the global economy are working its way into the system,” said John Kilduff, founding partner at Again Capital. Using interest rates like “a mallet to the global economy” may curtail economic activity and “that’s why you’re seeing the selloff.”

Economic slowdown concerns are putting crude on track for its first quarterly loss in more than two years. Prices are also being pushed lower by a surging dollar — with the Bloomberg Dollar Spot Index rising to a record high on Friday — making commodities priced in the currency more expensive for investors.

If crude declines further, the Organization of Petroleum Exporting Countries may be forced to cut output, said Nigeria’s Oil Minister Timipre Sylva. The group and its allies earlier this month agreed to the first supply reduction in more than a year. There could be further turmoil ahead with a looming European Union ban on Russian oil. Separately, member states are also racing to clinch a political agreement within weeks that would impose a price cap on Russian oil. The push gained momentum after President Vladimir Putin this week announced a mobilization of troops, escalating the war in Ukraine.

The pullback in prices is evident across oil markets. Gasoline futures dipped more than 6%, despite retail prices increasing after 98 days of straight declines. Refined product futures are experiencing heavy selling on Friday despite supply tightness as “risk taking has fallen out of favor,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients.

Some of the world’s biggest banks are, however, forecasting a rebound in prices because of low inventories, and sustained demand despite recession concerns. JPMorgan Chase & Co. forecasts Brent at $101 a barrel for the final quarter of 2022, while Goldman Sachs Group Inc. sees $125. “This is going to be a very, very volatile last quarter,” Amrita Sen, chief oil analyst at Energy Aspects Ltd., said in a Bloomberg television interview. There are “just too many different and contradictory factors driving prices right now,” she added.

Have a Great Day,
Loren R Bailey, President
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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!

www.owneroperatoradvisoryservice.com
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Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.