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Market Close: Nov 03 Up

Fueling Strategy: Please keep tanks topped today/tonight, Wednesday prices will jump UP 3 cents – Be Safe
NYMEX Crude    $  37.66 UP $.8500
NYMEX ULSD     $1.1271 UP $.0148
NYMEX Gas       $1.0769 UP $.0249
NEWS

Oil prices jumped early on Tuesday, with Brent back above the $40 a barrel mark, supported by a rally in financial markets and a weaker U.S. dollar on Election Day.

WTI Crude settled UP $.85 at $37.66 and Brent Crude was rallied to $40.11, returning to above $40 for the first time in a week.

On Monday,oil prices dropped in early trading as more European countries announced lock downs, but oil closed higher after the U.S. financial markets rebounded later on Monday. Today, oil prices rallied early on U.S. Election Day as equity markets around the world and in the U.S. also rose, with traders bracing for the outcome of the election. Commenting on the move in oil prices early on Tuesday, Tamas Varga with oil brokerage PVM told Reuters: “The jump has borne all the hallmarks of a massive, logical and even inevitable short-covering prior to the U.S. presidential elections.” According to the analyst, Tuesday’s oil rally is exclusively due to the U.S. election, not a recovery from the slump in oil prices last week.

The bearish factors for oil are still very much present, with Italy also tightening measures to curb the second coronavirus wave, but stopping short of a nationwide lockdown, for now. The UK, Austria, and Belgium joined this weekend France and Germany in announcing second lockdowns amid surging coronavirus cases. The market fears that the return of the lockdowns will further delay the economic and oil demand recovery.

In addition, Libyan crude oil production is estimated to have jumped to 800,000 barrels per day. (bpd), rising by 100,000 bpd over the past few days, and putting pressure on oil prices from the supply side.

One bullish factor which continued to support the market on Tuesday is that Russia is reportedly considering the idea that OPEC+ delay the easing of the production cuts. The top executives of Russia’s oil companies discussed on Monday the future of the OPEC+ deal with Russian Energy Minister Alexander Novak, including an option to extend the cuts as-is for three months until March 2021, instead of easing the cuts from January as planned, sources with knowledge of the matter told Russian news agency Interfax.

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.