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Market Close: Aug 29 Up

Fueling Strategy: Please keep tanks topped today/tonight, Friday prices will go UP 3.50 cents then another 1.50 cents Saturday – Be Safe Today
NYMEX Crude    $ 56.71 UP $.9300
NYMEX ULSD     $1.8640 UP $.0130
NYMEX Gas       $1.6847 UP $.0230
NEWS
Brent oil rose on Thursday, withstanding pressure from concerns about economic growth, while a sharp fall in U.S. inventories boosted West Texas Intermediate (WTI) crude futures. International benchmark Brent crude was up 51 cents at $61 a barrel. WTI was up 87 cents, or 1.7% to settle at $56.71 a barrel. “If the API (American Petroleum Institute) unexpectedly supplied bullets to oil bulls on Tuesday evening so that they could fire from all cylinders, the EIA flung the door of the ammunition depot wide open yesterday,” Tamas Varga of oil brokerage PVM said. The U.S. government’s Energy Information Administration said on Wednesday that American crude stocks dropped last week by 10 million barrels, while gasoline and distillate stocks each fell by 2.1 million barrels. On Tuesday, industry body API said U.S. crude stocks had fallen by 11.1 million barrels last week. U.S. weekly crude production rose 200,000 barrels per day to a new record at 12.5 million bpd in the week to Aug. 23, the EIA said.

Concerns about a slowdown in economic growth due to the trade war raging between the United States and China, the world’s biggest oil consumers, along with the potential hit to oil demand, are keeping prices in check. “Trade tensions (are) hanging like a dark cloud threatening to rain over oil prices,” said Jeffrey Halley, senior market analyst at OANDA. China’s commerce ministry said on Thursday China and the United States were discussing the next round of face-to-face trade talks scheduled for September, but hopes for progress hinged on whether Washington could create favorable conditions. San Francisco Federal Reserve President Mary Daly said she is in a “watch and see” mode as she assesses the need for another U.S. interest-rate cut for an economy that has “strong” momentum but faces headwinds from uncertainty and a global slowdown.

Concerns about the global economy have watered down the impact of oil production cuts that the Organization of the Petroleum Exporting Countries, Russia and other producers have been exercising over the past 2-1/2 years. When they (OPEC and its allies) really managed to accelerate the price from late 2016 onwards they had a big tailwind of global growth acceleration, now they have this big negative headwind of global growth de-acceleration,” said Bjarne Schieldrop, chief commodities analyst at Nordic bank SEB.

Morgan Stanley has lowered its oil price forecasts for the rest of the year, citing a weaker economic outlook, faltering demand and higher shale oil output.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
Office: 479-846-2761
Cell: 479-790-5581
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.