AAA Daily Fuel Gauge Report for Friday, 5/04/18

The Postal Regulatory Commission (PRC) has approved the temporary price increases for commercial domestic parcel products that USPS proposed last month. Retail prices for parcel products are unaffected. The planned commercial price increases for Priority Mail Express, Priority Mail, First-Class Package Service (FCPS) and Commercial Parcel Select will take effect Oct. 18, 2020 at 12 a.m. Central time and continue until Dec. 27, 2020 at 12 a.m. Central time. After that, prices will revert to 2020 prices. The temporary price adjustments are in response to heightened package volume due to the coronavirus pandemic, as well as expected increases in online shopping during the holidays. Details at: https://www.prc.gov/docs/114/114473/Order5673.pdf

Strong buying emerged in oil markets Tuesday as focus shifted to an expected decline in Iranian crude exports after a senior U.S. State Department official said countries must stop purchasing crude by the start of November or face sanctions. Companies that buy Iranian crude oil must completely halt those exports by Nov. 4 or else they will face powerful U.S. sanctions, a senior State Department official told reporters on Tuesday. Oil prices moved sharply higher as investor focus shifted to the prospect of a void in global supplies as Iran – OPEC's third largest producer – exports more than 2 million barrels per day (bpd). Click Read More below for additional information.

“It does appear the only way is up for oil,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney. “A lot of traders are speculating about the potential outcome of the OPEC meeting. Expectations are high and that could lead to disappointment if OPEC and its partners don’t deliver, but it doesn’t seem many are prepared to take the risk of that happening.” U.S. crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest oil-storage hub, dropped by 1.8 million barrels last week, the API said, according to people familiar with the data. Gasoline inventories expanded by 869,000 barrels, API data show. Click Read More below for additional information.