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Market Close: Aug 03 Mixed

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
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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.