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Market Close: June 22 Up

Fueling Strategy: Please fuel as needed today/tonight – Be Safe
NYMEX Crude    $ 40.46  UP $.7100
NYMEX ULSD     $1.2186 UP $.0072
NYMEX Gas       $1.2913 UP $.0197
NEWS
Oil rose more than 1% on Monday on tighter supplies from major producers and as coronavirus lockdowns continued to ease, but gains were capped by worries that a worldwide rise in new infections might stall a fuel demand recovery.

Brent Crude settled 89 cents, or 2.11%, higher at $43.08 per barrel. The WTI Crude contract for August, the day’s more active contract, gained 71 cents, or 1.79%, to settle at $40.46 per barrel. Prices were boosted by the plummeting U.S. and Canadian oil rig count, an indicator of future supply, said Andy Lipow, president of consultants Lipow Oil Associates. “The continued reopening of economies around the world is also helping to bring back demand, perhaps not at pre-COVID levels, but it is helping to eat into the surplus of oil,” Lipow said. Both Brent and U.S. contracts rose about 9% last week, supported by a recovery in fuel demand as lock downs eased and economic activity resumed.

However, ballooning virus cases in the United States and elsewhere kept prices from moving higher.South Korea said on Monday for the first time that it was in the midst of a second wave of the coronavirus. The World Health Organization reported a record rise in global cases on Sunday, with the biggest gains from North and South America.

Bank of America (BofA) Global Research has lifted its oil price forecast for this year and next as demand recovers while the OPEC+ output cut deal curtails supply and producers reduce capital expenditure. OPEC and allies such as Russia, a group known as OPEC+, has yet to decide whether to extend a record supply cut of 9.7 million barrels per day (bpd) into a fourth month, so it runs to the end of August. Russia said that $40 to $50 a barrel is a fair price.

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”
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.