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Market Close: July 28 Down

Fueling Strategy: Please fuel as needed today/tonight – Be Safe Today
NYMEX Crude    $ 41.04 DN $.5600
NYMEX ULSD     $1.2385 DN $.0156
NYMEX Gas       $1.2532 DN $.0215
NEWS
Oil prices fell around 1% on Tuesday, as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent Crude fell 19 cents, or 0.44%, to $43.22 a barrel, while WTI Crude settled 56 cents, or 1.35%, lower at $41.04 per barrel.

U.S. Republicans unveiled a new coronavirus relief proposal on Monday, four days before millions of Americans lose expanded unemployment benefits. On Tuesday, they faced difficult talks with Democrats on how best to recover from the coronavirus pandemic. “There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline,” said John Kilduff, partner at Again Capital LLC in New York. Kilduff added that the longer the talks drag out, the more it will weigh on market sentiment. Also a negative for prices, U.S. consumer confidence ebbed in July amid a flare-up in COVID-19 infections across the country. Cases worldwide have risen to around 16.57 million people.

Investors are awaiting the outcome of the U.S. Federal Reserve’s policy-setting panel meeting on Tuesday and Wednesday. The panel is expected to reiterate that interest rates will remain near zero for years to come. This month, Brent crude has fallen deeper into contango , a market structure in which the future price of the commodity is higher than the spot price, encouraging a build-up of inventories.

October prices were as much as 53 cents per barrel above September levels, compared with a 1 cent difference in early July. “This suggests that the tightening we were seeing in the market has eased somewhat, with the demand outlook more uncertain given the resurgence of COVID-19 cases in some regions,” said Warren Patterson, ING’s head of commodities strategy. Industry data on U.S. stockpiles is due later on Tuesday. Analysts polled by Reuters expect U.S. crude oil stockpiles were likely unchanged last week, while inventories of refined products probably declined.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
Office: 479-846-2761
Cell: 479-790-5581
“Serving the trucking industry since 1992”
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.