X

Market Close: Nov 12 Down

Fueling Strategy: Please, if possible, “partial fill only” tonight, prices drop one penny Friday then Saturday prices will fall another 1.5 cents – Be Safe!
NYMEX Crude    $  41.12 DN $.3300
NYMEX ULSD     $1.2333 DN $.0125
NYMEX Gas       $1.1571 DN $.0188
NEWS
Oil prices fell on Thursday, weighed down by the surge in coronavirus cases that is hampering the global economy, along with an unexpected rise in U.S. crude stockpiles.

Oil futures tracked with U.S. equities, which also fell on pandemic concerns. Europe is grappling with a sharp increase in infections and new social restrictions. In the United States, new cases have surpassed 100,000 per day for several days, and more than a dozen states have doubled their caseloads in the last two weeks.

Brent crude fell 27 cents to settle at $43.53 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 33 cents to settle at $41.12 a barrel. “When stocks gave up gains, oil followed,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. “It’s a very nervous market.” U.S. government data added to the bearishness, as crude inventories rose by 4.3 million barrels last week, compared with an expected fall of 913,000 barrels. Both contracts rallied this week after data showed an experimental coronavirus vaccine being developed by Pfizer Inc and BioNTech was 90% effective, raising hopes that the pandemic will be brought under control.

Even with that development, though, oil demand remains shaky. The International Energy Agency (IEA) said global oil demand was unlikely to rise significantly until well into 2021, if the vaccine is successful. “While the vaccine remains the best news received since the virus spread, life won’t return to normal in a matter of days or weeks,” said Hussein Sayed, chief market strategist at FXTM.

Similarly, the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for demand on Wednesday, saying consumption will rebound more slowly in 2021 than previously thought because of the virus. Algeria’s energy minister said OPEC+ – grouping OPEC and allies including Russia – could extend production cuts of 7.7 million barrels per day (bpd) into 2021, or deepen them further if needed. OPEC+ is expected to hold off on a scheduled increase in supply in January due to the weakening outlook. It was considering a reduction in its supply cuts to 5.7 million bpd. “We feel OPEC has no choice but to delay output increases; most likely by three months,” analysts at ANZ Research wrote.

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.