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Market Close: Sep 16 Up

Fueling Strategy: Please fuel as needed today/tonight, Thursday prices will go UP slightly – Please Be Safe Tonight
NYMEX Crude    $ 40.16 UP $1.8800
NYMEX ULSD     $1.1163 UP $0.0170
NYMEX Gas       $1.1889 UP $0.0508
NEWS
Oil prices jumped more than 4% on Wednesday, following a draw down in U.S. crude and gasoline inventories and as Hurricane Sally forced a swath of U.S. offshore production to shut.

Brent Crude rose $1.69, or 4.17%, to $42.22 a barrel, while WTI Crude futures gained $1.88, or 4.9%, to settle at $40.16.

U.S. crude stocks fell 4.4 million barrels last week to 496 million barrels, their lowest since April, the U.S. Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 1.3 million-barrel rise, U.S. gasoline stocks fell 400,000 barrels, the EIA said, more than double the draw forecast, despite a 4 percentage point hike in refining utilization rates. “The inventory numbers are significant – refineries seemed to jump back to activity, gasoline demand jumped back so that’s definitely positive,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. “It seems that we’re back on the track of the drawdown on supplies.”

Sally, which made landfall on the U.S. Gulf Coast as a Category 2 hurricane, also boosted oil prices as more than a fourth of offshore output shut due to the storm. Nearly 500,000 barrels per day (bpd) of offshore crude oil production was taken offline in the U.S. Gulf of Mexico, according to the U.S. Interior Department, roughly a third of the shut-ins caused by Hurricane Laura, which landed farther west in August.

Oil collapsed to historic lows as the coronavirus crisis hit demand. A record supply cut by OPEC and its allies, a grouping known as OPEC+, and an easing of lockdowns have helped Brent recover from a 21-year low below $16 in April. Prices have sunk in September, pressured by rising coronavirus cases and concerns about demand.

The Organization of the Petroleum Exporting Countries and International Energy Agency both cut their demand outlooks this week. A panel of OPEC+ oil ministers meets to review the supply pact on Thursday and is unlikely to recommend further output curbs despite the price drop, sources told Reuters.

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.