X

Market Close: Nov 04 Up

Fueling Strategy: Please fuel as needed today/tonight but plan on Thursday’s 1.5 cent increase – Be Safe
NYMEX Crude    $  39.15 UP $1.4900
NYMEX ULSD     $1.1735 UP $0.0464
NYMEX Gas       $1.1081 UP $0.0312
NEWS
Oil prices jumped on Wednesday after President Donald Trump falsely claimed victory in a tight U.S. election with millions of votes still to be counted and after data showed a large decline in U.S. crude inventories.

A victory by Trump is viewed as bullish for oil because of sanctions on Iran and his support for Saudi-led oil production cuts to support prices. A contested result and prolonged uncertainty is seen as the most bearish outcome for oil and markets in general, while a win for Joe Biden would be seen as bearish to neutral because of his support for green policies and softer stance on Iran. WTI Crude settled 4%, or $1.49, higher at $39.15 per barrel. Brent Crude was up by 92 cents, or 2.3%, at $40.63 a barrel. Both benchmarks extended gains to session highs after data showed U.S. crude inventories fell by 8 million barrels last week as Hurricane Zeta forced production declines in the Gulf of Mexico during the period.

U.S. weekly crude oil exports fell by 1.2 million barrels per day (bpd) to about 2.3 million bpd last week, the biggest drop since January, as Zeta disrupted flows. Trump falsely claimed to have won after his Democratic challenger Biden said he was confident of winning a contest that will not be resolved until a handful of states finish vote counts in the next hours or days.

“Perhaps the biggest conclusion to be drawn at this stage is that there is only a small likelihood that existing oil & gas tax incentives will be removed in the U.S. – even if Biden emerges as the winner – given the narrow margin of victory and a probable Republic majority in the U.S. Senate,” said Artem Abramov, Head of shale Research at Rystad Energy.

Wall Street saw an early surge and a rally in the dollar faded, as the too-close-to-call presidential election left traders betting on a divided Senate that would keep stimulus flowing but hold tax rises and regulation in check. Oil prices were also supported by the possibility that OPEC producers and Russia could consider deferring a planned increase in OPEC+ oil output from January as a second coronavirus wave stifles a recovery in fuel demand.

The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a grouping known as OPEC+, earlier agreed to ease cuts by 2 million barrels per day from the current 7.7 million bpd from January. More lock downs could cap oil price gains. Italy, Norway and Hungary have tightened coronavirus curbs, following Britain, France and other countries.

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.