Fueling Strategy: If possible, Don’t fuel tonight, Saturday AM wholesale prices will fall another 4 cents (windfall 8 cents) then Sunday AM look for wholesale prices to go down another 2.5 cents (windfall 10.5 cents) – Be Safe!!
NYMEX Crude $ 40.74 DN $1.0100
NY Harbor ULSD $1.3813 DN $0.0253
NYMEX Gasoline $1.2389 DN $0.0342
NEWS
Oil futures dropped toward $40 a barrel on Friday, poised for their largest weekly decline since March after a top energy watchdog warned that global oil demand will grow at a slower pace next year.
Natural-gas prices, meanwhile, bucked the trend in the energy sector to trade higher after data showed that supplies rose as expected. December West Texas Intermediate crude dropped 99 cents, or 2.4%, to $40.76 a barrel on the New York Mercantile Exchange, set for a weekly loss of 7.9%. That would be the largest weekly loss since 9.6% decline for the week ended March 13. On its contract expiration day, December Brent crude fell 24 cents, or 0.5%, to $43.82 a barrel on London’s ICE Futures exchange. January Brent crude , which will become the front-month contract, fell 44 cents, or 1%, to $44.75.
In its monthly report Friday, the International Energy Agency forecast global oil demand growth of 1.2 million barrels a day in 2016. That would follow an estimated 1.8 million-barrel a day growth in demand this year, which was a five-year high. The IEA also said that global stockpiles at a near-record three billion barrels are providing world markets with a degree of comfort and offer an “unprecedented buffer” against unexpected supply disruptions. The stockpiles among the countries in the Organization for Economic Cooperation and Development “could protect the market from a supply crunch should there be a lengthy spell of cold temperatures,” the IEA said. “But the current forecast is for a mild winter in Europe and the U.S. If it turns out to be true, bulging stock levels will add further pressure and oil market bears may choose not to hibernate.” The supply overhang was especially pronounced in U.S. government data released Thursday, which showed an increase of 4.2 million barrels in crude supplies for the week ended Nov. 6. The stock build illustrates that “in the face of rising refining, the U.S. remains awash with crude,” said Matt Smith, a commodity analyst at ClipperData. “This is either due to ongoing strong production or ongoing strength in imports—or both.”
The market will get an update on the latest U.S. oil-rig count later Friday from Baker Hughes . Last week, data showed a 10th-consecutive week of declines.