Fueling Strategy: Please keep tanks topped tonight, Thursday AM wholesale prices will jump up almost 3 cents then Friday AM they’ll drop back down 4 cents – Be Safe Tonight!
NYMEX Crude $ 80.52 DN $1.9700
NY Harbor ULSD $2.4734 DN $0.0398
NYMEX Gasoline $2.1556 DN $0.0578
DON’T FORGET TO BUY YOUR ADDITIVE:
www.fuelmanagerservices.com then click on buy-additive
NEWS
U.S. oil prices fell to a two-year low on Wednesday, reversing course after a weekly supply report showed a higher-than-expected increase in supplies of the commodity. Crude futures for December delivery declined $1.97, or 2.4%, to settle at $80.52 a barrel on the New York Mercantile Exchange. That was oil’s lowest settlement since June 28, 2012. December Brent futures fell 1.51, or 1.8%, to $84.71 a barrel on London’s ICE exchange. That settlement is Brent’s third lowest of the year. Both benchmarks are about 25% lower from peak prices hit in June.
Earlier Wednesday, the U.S. Energy Information Administration said U.S. crude-oil supplies rose by 7.1 million barrels in the week ended Oct. 17. Analysts surveyed by Platts had expected an increase of 2.5 million barrels. Crude futures had traded at $82.55 a little before the report was released. The EIA also said gasoline inventories decreased 1.3 million barrels on the same week, and supplies of distillates rose 1 million barrels. The analysts polled by Platts had expected gasoline inventories to decline 1.7 million barrels, and distillates supplies to fall 1.5 million barrels. Futures had caught a bit of a tailwind in recent sessions, and traded higher earlier Wednesday, on a better-than-expected outtook for China’s oil demand.
That, coupled with recent positive U.S. economic data, had eased concerns about demand, said Eugen Weinberg, head of commodity research at Commerzbank, in a note. The analyst struck an optimistic tone. “As winter approaches in the northern hemisphere, we should see the usual seasonal increase in demand for oil,” he added. A global oil glut and worries about slow demand have contributed to a sharp slide in oil since midyear.