Fueling Strategy: Please keep tanks topped tonight while wholesale prices are down over 2.5 cents, Saturday AM wholesale prices will jump back UP 2 cents – Be Safe!

NYMEX Crude $ 45.70 UP $.7900
NY Harbor ULSD $1.5225 DN $.0012
NYMEX Gasoline $1.3959 UP $.0307

NEWS
Oil futures climbed on Friday, adding to the week’s gain, as upbeat comments on the U.S. economy from Federal Reserve Chairwoman Janet Yellen helped provide a boost to the outlook for crude demand.

Prices got an added lift from data showing a fourth straight weekly decline in the number of active U.S. rigs drilling for oil. November West Texas Intermediate crude settled at $45.70 a barrel, up 79 cents, or 1.8%. Based on the close of the October contract last Friday, which was the front month at the time, prices were up 2.3% on the week. The November contract itself was up 1.5% from a week ago.

Meanwhile, November Brent crude settled 43 cents, or 1%, higher at $48.60 a barrel on the ICE Futures exchange. The contract gained more than 2% for the week. Yellen played down the “risks emanating from a China slowdown in contrast to last week’s statement and the markets appear to have liked the more upbeat tone,” said Michael Hewson, chief market analyst at CMC Markets UK, in a note Friday. On the other hand, some market participants emphasized a rate increase would be bearish for oil and commodities in the longer term. “Yellen’s comments will send jitters across the market, prompting traders to stay in a risk-averse mode,” OCBC economist Barnabas Gan said. In her speech Thursday after U.S. markets closed, Yellen argued in favor of raising interest rates later this year. A low interest-rate regime has generally been supportive for commodities as it makes it cheaper for investors to store them. However, last week’s decision by the Fed to keep rates low was overshadowed by underlying worries about the global economy.

U.S. economic data Friday showed that the U.S. economy grew at an annual rate of 3.9% in the second quarter, while the final read of consumer sentiment was revised higher to 87.2 for September, but that is down from the August final reading. Also Friday, Baker Hughes reported that the number of active U.S. oil-drilling rigs fell by 4 to 640, as of Sept. 25. Most traders are also betting that the U.S. supply will tighten more as the rig count falls further,” said Naeem Aslam, chief market analyst at AvaTrade. “However, given the weakness in the Chinese economy, the second biggest consumer in the world, it is difficult to see where the demand will pop up from.” Aslam said Friday’s moves were based on technical levels. “We have a reverse ‘head and shoulder’ formed on an intraday chart and this is giving us the projection target price of $48. The near term support is at $43.50,” he said.