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Market Close: Oct 07 Down

Fueling Strategy: Please keep tanks topped tonight, Thursday prices will jump UP 6 cents but prices will correct downward 3 cents Friday- Be Safe Tonight
NYMEX Crude    $ 39.95 DN $.7200
NYMEX ULSD     $1.1608 DN $.0278
NYMEX Gas       $1.2009 DN $.0342
NEWS
Nov WTI crude oil (CLX20) on Wednesday closed down -0.72, Dec Brent crude oil is down -1.11, and Nov RBOB gasoline (RBX20) closed down -0.0342.

The energy complex on Wednesday settled sharply lower. Concern about a recovery in oil demand weighed on energy prices after President Trump on Tuesday instructed Treasury Secretary Mnuchin to end stimulus talks. Crude prices remained weaker on Wednesday after weekly EIA data showed that U.S. crude oil inventories unexpectedly increased Weak demand for global air travel is negative for jet fuel and crude prices. Data from Bloomberg NEF shows airlines in the U.S., Europe, and Asia have cut 5,500 flights per day scheduled for November.

Wednesday’s European economic data was negative for energy demand and crude prices. German Aug industrial production unexpectedly fell -0.2% m/m, weaker than expectations of +1.5% m/m. Signs of strength in global crude demand is positive for oil prices after Saudi Arabia on Tuesday raised the pricing of its crude oil to its Asian customers for November delivery, the first price increase since August.

A bullish factor for crude is that Hurricane Delta has forced closures of crude oil platforms in the Gulf with about 30% of total U.S. Gulf crude output shut as of Tuesday afternoon. Accuweather said today that Hurricane Delta should make landfall late Thursday or early Friday as a category 3 hurricane between Louisiana and Mississippi. The ongoing Covid pandemic has undercut global growth and energy demand and is bearish for crude prices. Infections have risen above 36.107 million around the world, with deaths exceeding 1.055 million.

Additional crude supplies from Libya are a bearish factor for crude prices. After a blockade was partially lifted last week, Libya’s crude output as of Saturday rose to around 300,000 bpd, up from 80,000 bp at the start of last month.

Crude prices maintained their losses Wednesday after the EIA reported that U.S. crude inventories unexpectedly rose +501,000 bbl, more than expectations for a -1.0 million bbl draw. On the positive side, EIA gasoline stockpiles fell -1.4 million bbl to a 10-month low, a bigger decline than expectations of -500,000 bbl.

Wednesday’s weekly EIA data showed that (1) U.S. crude oil inventories as of Oct 2 were +12.2% above the seasonal 5-year average, (2) gasoline inventories were -0.4% below the 5-year average, and (3) distillate inventories were +21.9% above the 5-year average. U.S. crude oil production in the week ended Oct 2 was up +2.8% w/w to 11.0 million bpd and is down by -2.1 million bpd (-16.0%) from Feb’s record-high of 13.1 million bpd.

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.