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Market Close: July 23 Up

Fueling Strategy: Please keep tanks topped today, tonight top all tanks, Saturday prices will go UP another 4.5 cents ~ Be Safe!
NYMEX Crude    $ 72.07 UP $.1600
NYMEX ULSD     $2.1339 UP $.0013
NYMEX Gas       $2.2913 UP $.0181
NEWS
Oil squeezed out its first weekly gain in three on signs that global demand is holding up despite concerns that the renewed spread of the virus could stall the recovery. Futures in New York rose 0.2% this week, completely recouping a selloff on Monday that was stoked by the rapidly spreading delta variant. Fuel demand and road traffic from the U.S. to Asia and Europe remains resilient, underscoring expectations that the recovery hasn’t been derailed and global inventories will continue to shrink. “The fact of the matter is that we’re not going to see, at least in the U.S. and in Europe, a massive return to strict lock down,” said Ed Moya, senior market analyst at Oanda Corp.

Crude has rallied nearly 50% this year as ongoing vaccination campaigns have propelled re-openings. Data this week showed gasoline demand is essentially back to normal in many of the biggest consuming countries. Meanwhile, OPEC+ and U.S. shale producers have shown discipline in returning shuttered supplies to the market.

The 7.5% price slump on Monday came just a day after the Organization of Petroleum Exporting Countries and its allies led by Saudi Arabia and Russia finalized an agreement to gradually restore production they halted during the pandemic. OPEC+’s modest increase eased fears around concerns of oversupply. “Everybody thinks they are going to flood the market, and then they take a step back and realize that, hey, they’re adding because the supply is being burned off,” said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. The recent dip in prices is a buying opportunity and Brent prices should hit $100 per barrel next year, said a group of analysts at Bank of America Corp. in a recent note to clients.

This week, Schlumberger and Baker Hughes Inc. suggested the rebound in the U.S. shale patch will likely slow this year as companies keep a lid on spending. Despite a strong recovery in crude prices in 2021, the shale industry is largely resisting adding new supply.

Still, the virus continues to pose a challenge. The Olympics opening ceremony kicked off in a nearly empty stadium in Tokyo, amid a record number of new infections linked to the games. In China, there are signs that a fresh outbreak at the airport in the eastern Chinese city of Nanjing has quietly spread to other provinces.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
“Serving the trucking industry since 1992”
Office: 479-846-2761
Cell: 479-790-5581
www.FuelManagerServices.com
www.owneroperatoradvisoryservice.com
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”
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.