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Market Close: Oct 30 Mixed

Fueling Strategy: Please fill as needed today/tonight – Be Safe
NYMEX Crude        $  54.15 UP $.2500
NY Harbor ULSD    $1.8777 UP $.0108
NYMEX Gasoline   $1.7641 DN $.0045
NEWS

Oil prices climbed Monday, with the global crude benchmark extending its push above $60 a barrel to levels not seen in more than two years and the U.S. benchmark crude ending at an eight-month high.

A surge for oil prices last week stemmed from speculation that the Organization of the Petroleum Exporting Countries and other major producers will agree to extend their production-cut deal through the end of the next year. OPEC will hold its next official meeting on Nov. 30 in Vienna.

December Brent crude, the global benchmark rose 46 cents, or 0.8%, to settle at $60.90 a barrel, poised to again settle at the highest for a front-month contract since July 2, 2015, according to data from WSJ Market Data Group. The December contract, which expires at Tuesday’s settlement, rose about 4.7% last week. U.S. benchmark West Texas Intermediate crude for December delivery gained 25 cents, or 0.5%, to $54.15 a barrel. Prices saw their highest finish since Feb. 23, after gaining around 4% last week.

“Strong economic data and growing chatter about an extension of OPEC-led production cuts helped counter a big increase in [U.S.] production for oil,” said Tyler Richey, co-editor of the Sevens Report, adding that the market is also getting a boost from expectations of stronger demand. But the rally has also caused some analysts to worry that U.S. producers will now have an incentive to further boost crude output.

“Current price levels could translate to some additional production strength moving into 2018 as U.S. shale will look to respond, with early signs of a boost coming in the form of last week’s rig count, where oil rigs saw a net gain,” said Robbie Fraser, commodity analyst at Schneider Electric. Last week, data from Baker Hughes showed a modest rise of 1 oil rig, but that was the first climb in four weeks. “While a single data point hardly represents a trend, it does raise the importance of keeping a close eye on production indicators over the weeks ahead as the market questions how high prices can rise before additional barrels start to hit the market,” said Fraser, in a daily note.

Also on Nymex Monday, November heating oil ended at $1.878 a gallon, up 0.6%. The November contracts expire at Tuesday’s settlement. December natural gas tacked on less than 0.1% to $2.966 per million British thermal units.

November gasoline edged down by 0.3% to $1.764 a gallon. Prices at the retail level, however, saw the U.S. average climb Monday to mark the first weekly rise in seven weeks, according to GasBuddy. That comes ahead of Wednesday’s 12-cent state gas tax hike in California. “California taxes are unusually high, and they are about to get higher,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service. But “Californians have become accustomed to paying more than $3 gallon for much of 2017.”

 

Have a great day,

Loren R. Bailey, President
Fuel Manager Services Inc
“Celebrating 25-years of Excellent Service”

Office: 479-846-2761
Cell: 479-790-5581

 

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.