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Market Close: June 12 Mixed

Fueling Strategy: Please partial fill ONLY (one enough to get through midnight tonight) due to Saturday prices will fall 8.5 cents – Be Safe Today
NYMEX Crude    $  36.26 DN $.0800
NYMEX ULSD     $1.1014 UP $.0134
NYMEX Gas       $1.1243 UP $.0055
NEWS
Oil was little changed on Friday and headed for a first weekly fall since April as new U.S. coronavirus cases spiked, stoking fears of a second wave of the virus hitting fuel demand. WTI Crude settled 8 cents lower at $36.26 per barrel, while Brent Crude gained 18 cents to settle at $38.73. The oil benchmarks were heading for weekly declines of around 8%, their first after six weeks of gains that have lifted prices off April lows.

Fears that the coronavirus pandemic may be far from over has brought the rally to a halt, with about half a dozen U.S. states reporting spikes in new infections. “We definitely have an explosion of cases in areas that were not really affected before,” said Bob Yawger, director of energy futures at Mizuho. “That ultimately leads to less people driving, less demand for gasoline.”

At the same time, U.S. crude oil inventories have risen to a record 538.1 million barrels, as cheap imports from Saudi Arabia flowed into the country. The build happened despite producers from the United States, and the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, cutting supply. The number of crude oil drilling rigs in the United States, an indicator of future supply, fell by seven to 199 this week, data from oil services firm Baker Hughes showed.

OPEC+ slashed supplies by 9.7 million barrels per day (bpd), about 10% of pre-pandemic demand, and agreed last weekend to extend the reduction. “While a bullish argument can still be made as production continues to decline with demand still showing improvement, we look for the down trend in output to begin slowing appreciably while demand recovery could be downsized if the coronavirus continues to ramp up,” said Jim Ritterbusch of Ritterbusch and Associates.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
Office: 479-846-2761
Cell: 479-790-5581
“Serving the trucking industry since 1992”
www.FuelManagerServices.com
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.