Fueling Strategy: Please top all tanks tonight before 23:00 CST re-top tanks, Saturday AM wholesale prices will go UP almost 1.2 cents – Be Safe

NYMEX Crude $ 43.87 DN $.7900
NY Harbor ULSD $1.5436 DN $.0063
NYMEX Gasoline $1.6230 DN $.0248

NEWS
Oil futures fell Friday, with the U.S. benchmark closing at its lowest level in more than four months after jobs data boosted expectations the Federal Reserve will deliver a rate hike as early as September, and the number of U.S. oil rigs rose for a second week. “There is absolutely no fundamental strength now. It does not look like that the market will reverse any time soon,” said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. On the New York Mercantile Exchange, crude futures for September delivery fell 79 cents, or 1.8%, to close at $43.87 a barrel—the lowest close for a most-active contract since March 17. Oil fell 6.9% for the week, the largest drop in four weeks.

Meanwhile, Brent crude for September delivery dropped 91 cents, or 1.8%, to $48.61 a barrel, its lowest close since January. Brent saw a 6.9% weekly fall, its largest since March. Oil slipped back toward session lows after oil-services firm Baker Hughes said the number of U.S. oil rigs rose to 670 this week from 664.

Earlier, the Labor Department said the U.S. economy added 215,000 jobs in July, strong enough to leave intact expectations for a Fed move, economists said. Expectations for higher rates initially boosted the dollar, putting pressure on oil and other commodities, which tend to suffer as the dollar gains ground. A stronger dollar is one of several factors seen weighing on oil, which also is contending with a global supply glut and concerns about global growth tied to uncertainty about China’s economy. The dollar later gave back gains. Oil pared losses, but came under renewed pressure late in the session after oil-services firm Baker Hughes said the number of U.S. oil rigs rose by six this week. The rise adds to worries that U.S. production will remain high despite a sharp drop in oil prices.

But worries about China have played the primary role in souring investor sentiment toward industrial commodities, said Thomas Pugh, commodities economist at Capital Economics, in a note. “The main source of concern has been a renewed slump in Chinese equity prices, along with continued concerns about a hard landing for the economy. This has dragged the price of oil down even further,” Pugh said Nymex oil futures could test $40 per barrel, while Brent may fall to $45 per barrel, Thiagarajan said.

After a brief rebound in the spring, the market’s mood has turned as negative as it was last winter, as few producers have shown any sign of cutbacks in response to low prices. Iran has indicated it plans to step up supplies as soon as sanctions are lifted. Crude-oil dynamics could worsen as the U.S. appears to be getting closer to lifting a 40-year-ban on exports. Despite a flood of negative news swamping the market, one positive factor is robust import demand from China and India. Still, China’s weakening economic fundamentals have caused concern.

A Goldman Sachs report said the largest demand growth ever dates back over a decade to 2004 from China and other emerging markets. “Today, that boom decade has been brought to a halt,” the report says, adding that emerging nations are facing large macro imbalances and debt.