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Market Close: Sep 22 Mixed

Fueling Strategy: Please partial fill ONLY today/tonight, Wednesday prices will fall 5 cents – Be Safe Today
NYMEX Crude    $  39.60 UP $.2900
NYMEX ULSD     $1.0961 DN $.0112
NYMEX Gas       $1.1643 DN $.0128
NEWS
Oil rose on Tuesday, paring sharp overnight losses, as the latest tropical storm in the Gulf of Mexico lost strength, but worries about fuel demand persisted with flare-ups around the globe in conronavirus cases.

Brent Crude futures rose 27 cents, or 0.65%, to $41.71 a barrel. WTI Crude futures for October, due to expire on Tuesday, rose 29 cents, or 0.74%, to settle at $39.60 a barrel.

Crude prices, which fell about 4% on Monday, steadied as Texas refineries stayed open despite forecasts of heavy flooding, with Tropical Storm Beta expected to keep losing strength, allaying worries about U.S. refinery demand for feed stock. “The recovery in sentiment after the rout in risk assets seen a fortnight ago was clearly fragile,” said Vandana Hari, energy analyst at Singapore-based Vanda Insights. “This week, the market is recalibrating to a likely stalling of the economic recovery in Europe as several countries in the region impose fresh restrictions to contain a surge in the coronavirus.”

Monday’s price slump was spurred by concerns that an increase in coronavirus cases in major markets could lead to fresh lock downs and hurt demand. That raised the possibility that Libyan oil could return when it isn’t needed. “We had a pretty punchy risk-off session (overnight) … on fears around the risk that a COVID resurgence starts to have negative impacts on demand again,” said Lachlan Shaw, National Australia Bank’s head of commodity research. Markets are nervous about demand in places like the United Kingdom, where fresh restrictions are being imposed. U.S. health officials are also warning of a new wave in the coming winter. “When the virus resurges, governments lock down, impose restrictions, and individuals and businesses start to retreat. It’s all bad for demand,” Shaw said.

Traders will be watching out for the American Petroleum Institute’s data on U.S. oil inventories due later on Tuesday. U.S. crude oil and gasoline stockpiles likely fell last week, while inventories of distillates, including diesel, were seen climbing, a preliminary Reuters poll showed.

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.