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Market Close: Sep 12 Up

Fueling Strategy: Please fuel as needed today/tonight~ Be Safe
NMEX Crude     $ 87.78 UP $.9900
NYMEX ULSD    $3.6031 UP $.0244
NYMEX Gas      $2.4448 UP $.0117
NEWS

Oil held gains after recovering from a weak start as declines in the US dollar offset concerns that global demand is under pressure.

West Texas Intermediate settled at $87.8 a barrel for the day after earlier sinking to $85. Risk sentiment generally firmed across markets on Monday with equity markets climbing in Europe and the American currency weakening sharply as traders bet inflation is near a peak. A weaker greenback tends to benefit assets priced in the currency.

China’s efforts to suppress Covid-19 by curbing activity has weighed on oil prices with their potential of slowing down global demand. Nonetheless, some analysts see a host of bullish factors that could elevate prices heading into the end of the year.

A lot has turned bullish for oil today — the dollar rally halted on optimism that inflation will continue to cool; Iran nuclear deal talks stalled, which delays the idea that any relief to supplies will be happening anytime soon,” said Ed Moya, senior market analyst at Oanda.

“Food and medical shortages in China raise the prospects that President Xi will soon have to abandon their zero-Covid policy. The oil market still remains tight and the latest plunge was overdone,” Moya added.

Crude has sunk by almost a third since June, shedding all the gains since Russia’s invasion of Ukraine. The reversal has come as central banks, including the Federal Reserve, tighten policy to quell inflation. Still, back-to-back declines in the dollar have helped oil recover from its lows in recent days, while a spate of Chinese crude purchases has spurred some optimism that the real-world market for barrels may have bottomed.

The conclusion of the Biden Administration’s US strategic oil releases, harsher European sanctions that start on Dec. 5 and gas-to-oil switching would also support oil prices, Rebecca Babin, a senior energy trader at CIBC Private Wealth Management said during a Bloomberg MLIV event.

“Looking out for rest of 2022, we see prices moving higher with WTI in the $95-$105 range and Brent $100-$110,” she said.

Chinese authorities have intensified lockdowns and restrictions lately as a key Communist Party meeting looms. Reflecting the challenges, UBS Group AG trimmed its December Brent crude forecast by $15 a barrel. An outbreak at a top Beijing media school should be stamped out “in the shortest period of time,” local government officials said Sunday.

“Everyone’s worried about this slowdown in demand. But boy, we better hope for a slowdown in demand because we’re running out of oil in the SPR and if China reopens, we’re not going to have enough oil to meet that demand,” said Phil Flynn, senior market analyst at Price Futures Group.

The US has released barrels from its strategic reserve this year in an attempt to offset supply tightness but those volumes are set to end shortly, and barrels in underground caverns are at the lowest levels in almost three decades.

In the US late Friday, the Treasury issued rough compliance guidgelines for the proposed cap on Russian oil, focusing on the documentation needed by the private sector to adhere to the program, which is meant to kick in from December as Europe tightens sanctions on flows. Deputy Treasury Secretary Wally Adeyemo said Moscow would have no choice but to participate.

Iranian nuclear talks were also in focus as the UK, France and Germany said over the weekend that they have “serious doubts” about Tehran’s commitment to a new agreement. Should a pact be agreed to, it could pave the way for greatly increased flows of Iranian crude to the global market.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please partial fill only today/tonight ~ Saturday prices will fall 4 to 5 cents, Please keep your tanks topped SATURDAY and completely full of fuel before 23:00 CST due to Sunday prices will jump UP 4 cents ~ Be Safe

NMEX Crude     $ 86.79 UP $3.2500
NYMEX ULSD    $3.5787 UP $0.0386
NYMEX Gas      $2.4331 UP $0.0870
NEWS

Oil mustered a late comeback after dropping to six-month lows this week as a softer dollar bolstered trader demand across assets.

West Texas Intermediate settled above $86 a barrel, finishing a tumultuous week nearly flat with the prior seven days. At the start of the week both benchmarks, WTI and Brent, slipped to lows not seen since the start of year. Extended Covid lockdowns in China are deepening concerns that demand for oil will shrink The dollar rallied for much of the week, adding another headwind to commodities priced in the currency. However, a sharp reversal Friday lifted oil and other riskier assets. “The broader market rally is helping push crude prices higher,” said Ed Moya, senior market analyst at Oanda. “China’s inflation numbers were promising and that is giving hope that central banks won’t have to be as aggressive with tightening over the next few months.”

Crude is down about $40 from its closing high earlier this year and the market has been beset by volatility ever since Russia invaded Ukraine. For much of the period since March, daily trading volumes have been below the 200-day average. Liquidity across commodity markets has also faced scrutiny amid Europe’s energy crisis, with the region’s ministers gathering in Brussels Friday. Crude’s slump this week presents a challenge for the Organization of Petroleum Exporting Countries and its allies after they announced a nominal output cut at the start of the week, which triggered a short-lived rally. The reduction surprised many traders, who had expected no change from OPEC+ no change.

Despite the current bout of market weakness, US officials are hunting for ways to head off a feared spike in oil prices later this year, including the possibility of an additional release from strategic crude reserves. The officials are warning of a potential increase in prices this December when EU sanctions on Russian energy supplies take effect, unless other steps are taken.

On Thursday, US government data showed a large buildup of crude inventories, which swelled by a greater-than-expected 8.8 million barrels. At the same time, a gauge of gasoline demand sank below 2020 seasonal levels.

Have a Great Day,

Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please keep tanks topped today/tonight before 23:00 CST refuel, Friday prices will go UP 1.5 cents ~ Be Safe 

NMEX Crude     $ 83.54 UP $1.6000
NYMEX ULSD    $3.5401 DN $0.0459
NYMEX Gas      $2.3461 UP $0.0384
NEWS
Oil rebounded from an eight-month low as the market shrugged off a US report showing swelling crude stockpiles and slumping demand.

West Texas Intermediate advanced 2% in a move traders characterized as a technical correction following crude’s descent into oversold territory. The jump came even as US oil inventories rose 8.85 million barrels last week and one measure of gasoline demand plunged below seasonal 2020 levels.

“Crude is trying to bounce off the lowest levels since March as the last two weeks’ selloff in prices stemmed from a perceived slowdown in both Asia and Europe with expectations that demand destruction is coming,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Crude’s tumble in recent days has seen it break out of the trading range it’s been in for much of the summer. Futures have been trading below key moving averages and forming bearish technical patterns that compounded the recent sell-off. Monetary tightening and concerns about an economic slowdown have also weighed on the market.

“The rising US dollar to multi-year highs has been a big bearish factor to crude and with the Fed set to raise interest rates again, the strength looks to continue,” said Kissler. That along with China locking back down has “spooked” the energy sector.

Meanwhile, the Biden administration is weighing the possibilty of another release from the Strategic Petroleum Reserve to stave off an oil-price spike when EU sanctions on Russian supplies take effect this winter.

Still, the WTI prompt timespread, an indicator of market tightness, widened Thursday after oil inventories at the Cushing, Oklahoma, storage hub declined for a second week. In another bullish signal, the Energy Information Administration raised its outlook for global oil demand Wednesday, while also cutting the forecast for US supply.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

 https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please fuel as needed today/tonight, Thursday prices will drop less than 1/2 cents ~ Be Safe
NMEX Crude     $ 81.94 DN $4.9400
NYMEX ULSD    $3.5860 UP $0.0122
NYMEX Gas      $2.2670 DN $0.1010
NEWS

Oil benchmarks tumbled to their lowest in more than six months as demand concerns emanating from China prompted a wave of selling that turned into a frenzy as prices breached technical warning levels.

West Texas Intermediate extended losses to settle below $82 a barrel while Brent closed at $88, their lowest since January. A dollar gauge reached an all-time high on Wednesday, offering a macro headwind to commodities at a time when the oil market is grappling with potential slowing demand in China.

Traders lamented the market picture was darkening as oil formed what’s referred to as a “death cross” – a bearish technical signal where WTI’s 50-day moving average falls below its 200-day MA- for the first time since 2020.

“Elevated volatility is the story here,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management. “There is no way to have conviction and want to place bets when the market trades in huge ranges with limited liquidity. The risk reward is just not there.”

Crude has made a soft start to September, extending a run of three monthly losses that’s the longest streak in more than two years. With central banks jacking up rates to quell inflation, investors are concerned economies may tip into recession and slow crude demand. In China, one of the world’s largest oil consumers, virus curbs are damping demand, with centers from Chengdu to Shenzhen extending lockdowns or adopting movement controls.

As oil sheds all of the gains accrued since the invasion of Ukraine and heads back to levels seen at the start of the year, traders are evaluating if prices could fall much further. Despite the uncertainty in Chinese demand, another main oil buyer, the US, remains strong. “WTI crude should hold $80 given how strong the US economy remains and now that most of the demand shock from China’s deteriorating COVID situation has been priced in,” said Ed Moya, senior market analyst at Oanda.

Meanwhile, the US administration is attempting to build a coalition on a proposed oil price cap on Russian crude in order to limit Moscow’s ability to fund its war in Ukraine. Market participants see the move as largely symbolic as Russia has been capable of working around G-7 restrictions.

Prices erased a one-day rally on Monday driven by a decision from the Organization of Petroleum Exporting Countries and its allies on Monday to pare output. Reflecting the market softness, Saudi Arabia reduced prices for customers in Asia and Europe for next month’s shipments.

Have a Great Day,

Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

 https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please fuel as needed today/tonight ~ Be Safe
NMEX Crude     $ 86.88 UP $.0100
NYMEX ULSD    $3.5738 DN $.0042
NYMEX Gas      $2.4159 DN $.0477
NEWS
Oil dropped as additional Covid-related lockdowns in China heightened risk-off sentiment across markets, halting the rally that followed the OPEC+ meeting earlier this week.

Brent crude dropped 3.04% to settle at $92.83 a barrel Tuesday. West Texas Intermediate was little changed at $86.88 compared to its Friday settlement; markets in New York didn’t register a closing price on Monday due to the US holiday. Saudi Arabia cut oil prices for customers in Asia from a record as Covid-19 restrictions and sagging economies cool energy demand in the region. Virus-related lockdowns in China spread, reigniting fears of a global slowdown. “Energy traders appear to be skeptical of any rallies as they digest a plethora of global economic challenges, a wrath of uncertainty to supplies, and looming crude demand destruction fears,” said Ed Moya, senior market analyst at Oanda.

On Monday, WTI rallied over $90 a barrel as the Organization of Petroleum Exporting Countries and allies including Russia agreed to shave a modest 100,000 barrels a day off production.

Oil’s drop in the summer months is the latest chapter of a tumultuous year, with prices driven higher in the first half by Russia’s invasion of Ukraine, then undermined as central banks shifted tack and Moscow managed to keep most exports flowing. Crude’s recent slump prompted OPEC+ to cust its productions for the first time in more than a year, a sign the production group is serious about managing global markets. “Fundamentally we’re probably moving in the right direction in terms of calming the oil market, but all of that friction out there related to Russia seems like it’s only going in one direction,” Jeff Brown, president of consultant FGE, said in a Bloomberg TV Interview. “OPEC is essentially signaling that we don’t like $90 a barrel. They’re pretty much at production limits, so let’s defend a high price.”

The group’s move “signals a willingness to resume active market management to avert a major sell-off due to recession concerns or expectations of policy-driven supply increases,” RBC Capital Markets LLC analysts including Helima Croft said in a note. “They are seeking to put short-sellers on notice that they will not easily surrender the recent gains and go gently into the night.”

Oil traders are also wrestling with the growing energy crisis in Europe. Governments are patching together emergency measures to support utilities amid concerns that companies will buckle under the weight of growing margin calls.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

 https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please fuel as needed today BUT plan on Friday’s prices to go down another 10 cents, Saturday is heading towards a 10 cent drop in prices ~ Be Safe
NMEX Crude     $ 86.61 DN $2.9400
NYMEX ULSD    $3.5612 DN $0.1062
NYMEX Gas      $2.3853 DN $0.0455
NEWS
Oil fell to a two-week low amid escalating concerns about worldwide demand while a broader risk-off sentiment weighed on assets from metals to equities

West Texas Intermediate futures dropped 3.3% to settle at $86.61 a barrel on Thursday. Investors are focusing on tightening monetary policy around the world that could crimp economic growth and hit oil demand. The lockdown of the Chinese megacity of Chengdu to contain a Covid-19 outbreak added to the negative sentiment.

“The oil benchmarks have started September lower as signs that the global economy is heading towards murky waters grow ever-more apparent,” said Harry Altham, an energy analyst for StoneX Group. “There has been a wider shift away from risk assets in recent days and this has accelerated as bets are on” for a 75-basis-point rise in US interest rates next month.

Oil declined by more than 20% in the three months through August, overturning all of the gains since Russia’s invasion of Ukraine at the end of February. The slump prompted Saudi Arabia to signal that the Organization of Petroleum Exporting Countries and its allies could cut supplies. The group is scheduled to gather on Monday to discuss output policy.

“What it could translate into is OPEC potentially once again cutting production if prices get too low,” said Ole Hansen, Saxo Bank’s head of commodity strategy. “That makes me believe that the downside is limited ahead of Monday’s meeting.”

Among the items that OPEC+ ministers may weigh up is a US-led plan to cap the price of Russian crude in a bid to deprive Moscow of funds amid the war in Ukraine. The proposal has been gathering support, with the UK government signaling its approval. Group of Seven finance ministers including US Treasury Secretary Janet Yellen are due to discuss the proposal on Friday.

Strength in the greenback has added to headwinds for dollar-denominated commodities as the pricier currency makes them more expensive for overseas buyers. The Bloomberg Dollar Index rose toward the highest level on record following a run of three monthly gains.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please don’t buy fuel tonight, Thursday’s prices to fall 9 cents then Friday we’ll prices continue to fall another 10 cents~ Be Safe Today
NMEX Crude     $ 89.55 DN $2.0900
NYMEX ULSD    $3.7154 DN $0.1017
NYMEX Gas      $2.6059 DN $0.0885
NEWS

Oil tumbled after Iraq’s state marketing company said exports haven’t been affected by violent clashes in Baghdad while low liquidity exacerbated price moves.

West Texas Intermediate fell 5.5% to settle below $92 a barrel as risk-off sentiment weighed down most commodities. Clashes in Baghdad have yet to hit Iraq’s oil production, soothing initial trader concerns that a major source of supply could be disrupted. Crude’s tight market has outweighed worries in recent days that a global recession could slow demand. Meanwhile, liquidity keeps dropping to fresh six-year lows and below-average volumes have led to choppy summer trading, with prices moving in a $7 range on Tuesday.

Crude reversed Monday’s gains “on news that Iraq will keep their export ports open even though major political unrest remains,” said Dennis Kissler, senior vice president of trading at BOK Financial. But the supply-demand balance has “tightened some and this week’s crude storage is looking for another decline of 500,000-600,000 barrels, which if seen, would take storage back to the lowest in three months.”

While prices have softened in recent months, crude received a fresh boost after Saudi Arabia warned that it was possible the Organization of Petroleum Exporting Countries and its allies, which convene Sept. 5, would reduce production as futures didn’t reflect fundamentals. Other members of the alliance signaled their support. Separately, Goldman Sachs Group Inc struck a bullish note, urging investors in a note Monday to “buy commodities now, worry about the recession later.”

Iraq has the capacity to boost exports to all destinations and won’t refuse any requests for more oil, Alaa Al-Yassiri, the director general of SOMO, Iraq’s national oil marketing company, said in an interview. Violence has been reported in the center of Baghdad, far from the main production-and-export hub of Basra in the south and other important areas north of the capital.

Traders are also keeping a close watch on a potential supply increase from Iran as negotiations over reviving a nuclear deal continue. The US and the Persian Gulf nation remain at loggerheads over key details of an emerging agreement, and may need several weeks to resolve their differences.

“It seems OPEC+ isn’t interested in the oil price slipping much below $100 a barrel,” said Craig Erlam, a senior market analyst at Oanda. While that would be “put to the test in the event of a nuclear deal, which still looks very challenging, or a global recession, the words alone could keep prices high for now,” he said.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

 https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

Market Close: Aug 30 Down

Fueling Strategy: Please “PARTIAL FILL ONLY” tonight, Wednesday prices will fall 9 to 10 cents then Thursday look for prices to fall another 9 cents ~ Be Safe Today

NMEX Crude     $ 91.64 DN $5.3700
NYMEX ULSD    $3.8171 DN $0.0928
NYMEX Gas      $2.6944 DN $0.1832
Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please fuel as needed today/tonight ~ Be Safe Today
NMEX Crude     $ 97.01 UP $3.9500
NYMEX ULSD    $3.9099 DN $0.0977
NYMEX Gas      $2.8776 UP $0.0263
NEWS
Oil climbed to the highest since late July as fears of production outages in Libya that would exacerbate a global energy crunch. West Texas Intermediate futures rose 4.2% to settle above $97 a barrel on Monday. Although Libyan output has so far withstood clashes between militias in the capital, traders are watching for signs that the violence may halt oil shipments at a time when Europe’s energy crisis is worsening.

Iran, meanwhile, said negotiations with the US over a European Union proposal to revive a nuclear deal will drag on into September, undercutting speculation that increased oil flows are imminent. “The one trade that everyone can agree upon is that the oil market will likely remain tight,” said Ed Moya, senior market analyst at Oanda.

Crude is on course for a third straight monthly drop on concern global growth will slow as central banks tighten policy aggressively, hurting consumption. To counter that weakness, Saudi Arabia raised the possibility last week that the Organization of Petroleum Exporting Countries and its allies could cut output. The group will meet Sept. 5 to consider October production and review the outlook for the rest of the year. Separately, loadings from an export terminal for Kazakhstan crude have seen interruptions.

Cries of supply shortages continue to come from all corners, with Shell Plc’s Chief Executive Officer Ben Van Beurden telling a conference in Norway that it’s a “fantast” that the global energy crunch will be easy to rectify. Speaking at the same event, Tesla Inc. CEO Elon Musk said the world needs more oil and gas now while also pushing to transition to renewable supplies.

Meanwhile, the EU is planning a emergency intervention to dampen the spike in power prices. As natural gas prices rally and trade five times higher than crude futures, it will be giving strong incentives for energy switching, said Francisco Blanch, head of global commodities and derivatives research at Bank of America Corp. in a note to clients.

In a bullish note on commodities, Goldman Sachs Group Inc. said that crude oil had scope to push higher, especially amid shortages of other energy raw materials including natural gas.

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

 

https://g.page/r/CUyL9wDolv04EAI/review

 

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Fueling Strategy: Please “PARTIAL FILL ONLY” today, Saturday prices will “finally” fall 6.5 cents, Sunday prices will go back UP 6 cents  ~ Be Safe
NMEX Crude     $ 93.06 UP $.5400
NYMEX ULSD    $4.0076 UP $.0585
NYMEX Gas      $2.8513 UP $.0392
 
NEWS
Oil rose this week with Saudi Arabia’s warning that supply cuts may be warranted overshadowing multiple bearish developments.

West Texas Intermediate futures settled at $93.06 a barrel on Friday for a 2.5% weekly gain. Prices have been buoyed since the Saudi oil minister said the OPEC+ alliance may limit production to stabilize a volatile market. Meanwhile, the US central bank probably will continue raising interest rates to combat inflation, Federal Reserve Chair Jerome Powell signaled. Higher rates are typically seen as damaging to energy demand.

“Powell reminded Wall Street that restrictive policy is required but we are not there yet, so recession fears and a deteriorating crude demand outlook is not warranted yet,” said Ed Moya, senior market analyst at Oanda.

Oil has lost almost a quarter of its value since June on escalating concerns over a global economic slowdown, but seems to have found a floor around $90 a barrel this month. The prospect of a revived nuclear deal with Iran, which could lead to a surge in crude exports, has added to bearish sentiment recently.

With inflation still rampant, Fed officials revived concerns Friday that they would take continue to move aggressively to slow the economy.  “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell said in remarks prepared for a policy forum in Jackson Hole, Wyoming. “The historical record cautions strongly against prematurely loosening policy.”

Have a Great Day,
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

 
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams

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