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Market Close: July 05 Down, Diesel DN 33.73 cents, Gas DN 35.88 cents

Fueling Strategy: Please fuel as needed tonight, Wednesday “partial fill only” buy only enough to get you into Thursday when prices will fall over 33 cents ~ Be Safe
NMEX Crude     $ 99.50 DN $8.9300
NYMEX ULSD    $3.6016 DN $0.3373
NYMEX Gas      $3.3290 DN $0.3588
NEWS

Oil posted its worst trading day in almost three months as recession fears gripped markets, outweighing a fundamentally tight supply market.

West Texas Intermediate crude futures settled below $100 on Tuesday after falling more than 8%, the most since March 9. Risk-off sentiment spread throughout markets on escalating concerns that a global economic slowdown will ultimately hobble demand. Oil prices have been prone to violent swings as traders fled to the exits after Russia invaded Ukraine, drying up liquidity. The latest plunge came as equities slid and the dollar surged. Citigroup Inc. said that crude could fall to $65 this year in the event of a recession.

Oil prices have been under pressure in the past month as central banks aggressively raise interest rates. Still, physical barrels are fetching enormous premiums. Saudi Arabia hiked its official selling prices to Asia on Tuesday. Its flagship Arab Light crude price will be $9.30 above its regional benchmark in August, an increase of $2.80.  “Crude oil prices have slumped as weakening demand concerns are starting to outweigh fears about tight supply,” said Fawad Razaqzada, market analyst at City Index. “A growing number of analysts are expecting that many of the world’s leading economies will suffer negative growth in the next few months, and this will drag the US into a recession.”

Adding to recessionary fears, Shanghai launched mass testing for Covid in nine districts after detecting cases the past two days, calling into question the demand recovery in one of the world’s biggest oil-consuming countries. The additional testing brings concerns that more lock downs could be implemented as the city reported several infections Sunday and Monday.

While futures have been pressured by the threat of a global economic slowdown, key market times preads remain robust, indicating that there’s solid demand for near-term supplies. A strike in Norway and supply disruption in Libya have exacerbated that strength of late.

Retail gasoline prices in the US have eased from a record above $5 a gallon in mid-June. The national average now stands at $4.80 a gallon, according to the latest figures from auto club AAA, after slipping for 21 consecutive days in the longest losing run in more than two years.

Have a Great Day,
UPCOMING OUT OF OFFICE DATES:
Thursday, July 28, 2022 – August 01, 2022
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
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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!

Marketing & Sales: Brian 817-480-2102
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.