Fueling Strategy: Please partial fill tonight, Friday AM wholesale prices will fall 6 cents – Be Safe Today!

NYMEX Crude $ 43.16 DN $1.5400
NY Harbor ULSD $1.3819 DN $0.0438
NYMEX Gasoline $1.2724 DN $0.0610

NEWS
Oil futures closed down more than 3% Thursday, carving out another three-week low, as doubts over the potential for a crude-production freeze persisted and data showing a contraction in the U.S. manufacturing activity contributed to expectations of weaker energy demand.

Russia’s energy minister has reportedly said that there was no need for talks to freeze output among major oil producers. Prices for natural gas, meanwhile, dropped over 3% after an increase in weekly U.S. supplies of the commodity came in a bit higher than expected. October West Texas Intermediate crude fell by $1.54, or 3.5%, to settle at $43.16 a barrel on the New York Mercantile Exchange, with prices down a fourth-straight session. November Brent crude UK:LCOV6 on London’s ICE Futures exchange ended at $45.45 a barrel, down $1.44, or 3.1%. Prices for both crude grades settled at their lowest levels since Aug. 10, according to Fact Set data.

“A fair amount of the bearishness [for oil] can be connected to recent comments out of Russia, indicating that they have little interest in coordinating with [the Organization of the Petroleum Exporting Countries at the moment,” said Robbie Fraser, a commodity analyst at Schneider Electric. Russian Energy Minister Alexander Novak said that with prices around $50 a barrel, it wasn’t necessary for major oil producers to discuss freezing production levels, according to news reports. OPEC plans to hold an informal meeting on the sidelines of an energy forum in Algeria later this month to discuss ways to stabilize the oil market. “Beyond the direct implications, the comments have weighed on prices based on Russia’s indication that $50 a barrel was an acceptable level,” said Fraser. “It speaks to the broader idea of improved efficiency and declining costs, and has bulls worried about the ability of production to hang on at these prices.” Add in some “lingering concerns” from Wednesday’s Energy Information Administration inventory numbers, “and oil prices have little reason to rebound,” said Fraser. Oil prices dropped more than 3% Wednesday following a bigger-than-expected build in U.S. oil inventories last week. Weekly data from the EIA showed U.S. crude stocks grew by 2.3 million barrels in the week ended Aug. 26. The report also showed a decline in gasoline supplies, but distillate stockpiles, which include heating oil, climbed.

he Institute for Supply Management said Thursday its manufacturing index in August fell to 49.4% from 52.6% last month, below the consensus expectation for a 52% reading—and any reading below 50% indicates contraction. Downbeat economic data can hint at a slowdown in energy demand. The ICE U.S. Dollar Index turned lower after the ISM manufacturing data, but that failed to support dollar-denominated oil prices.

In the short term, energy-market players will be eyeing the U.S. August job report due Friday for cues. Firms across the country added 177,000 workers to their ranks in August, according to payroll processor Automatic Data Processing Inc. A survey of economists by The Wall Street Journal tips an increase of 180,000. Analysts say solid growth in U.S. job market would give the federal government more reasons to raise interest rates. Higher rates tend to strengthen the dollar which will add downward pressure on commodities prices traded in the greenback.