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Market Close: Oct 08 Up

Fueling Strategy: Please completely top out your tanks before 23:00 CST tonight, Saturday prices will go back UP 2 cents then Sunday look for another 1.5 cents increase ~ Be Safe
NYMEX Crude    $ 79.35 UP $1.0500
NYMEX ULSD     $2.4737 UP $0.0141
NYMEX Gas       $2.3662 UP $0.0318
NEWS
U.S. crude futures topped $80 a barrel for the first time since November 2014 as a global energy crisis boosts demand at a time when OPEC+ producers are keeping supplies tight. Futures in New York rose 1.3% on Friday, popping above the key, psychological level before pulling back. This week brought many indications that supplies will remain constrained: Saudi Aramco said a global natural gas shortage was already boosting oil demand for power generation and heating, and the U.S. Energy Department said that it had no plans “at this time” to tap the nation’s oil reserves.

A weakening of the dollar on the back of worse-than-expected U.S. labor market data on Friday also boosted the appeal of commodities priced in the currency.

The U.S. benchmark posted a seventh straight weekly gain, the longest stretch of advances since December. The economic recovery from the pandemic, along with supply disruptions in the U.S. Gulf of Mexico, had already tightened the market before rising natural gas prices spurred additional demand for oil products like diesel and fuel oil. The decision by OPEC producers and their allies to only modestly increase output in November threatens to further constrain supplies.

Meanwhile, various underlying oil market gauges are also showing signs of strength. West Texas Intermediate crude’s nearest contract traded at the biggest premium to second-month futures since August in a sign of rising demand and tight supplies. The so-called prompt spread has increased as more of the world attempts to substitute fuel oil for natural gas as quickly as possible.  “They don’t need to buy it a month from now, they needed it yesterday,” said Bob Yawger, director of the futures division at Mizuho Securities USA. “It’s a panic buyer’s situation.”

Meanwhile, China is still facing power outages and Beijing has ordered its state-owned firms to secure energy supplies for winter at all costs. Chinese fuel oil futures jumped almost 10% on Friday as local markets resumed after a week-long national holiday.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
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.