Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
CRUDE
Over the past 24 hours, WTI (West Texas Intermediate) crude prices stabilized after their collapse yesterday morning, though prices in today’s trading session still opened below $68/b. Diesel and gasoline prices followed crude down into a trough, and they also began to pull out of the slump. Our three 24-hour price charts today show the sharp drop in prices, followed by the rebound.
As noted in yesterday’s column, global markets were jumpy upon market opening, weighing the possible impacts of Turkey’s financial crisis. By mid-morning, the Turkish Lira collapsed, dragging down currencies in other emerging markets as well. Oil prices collapsed. The Turkish authorities responded, and the Lira began to rally, as did oil prices. However, the crisis is not fully resolved, and some emerging market currencies remain weak relative to the U.S. Dollar. Crude oil prices are expressed in U.S. Dollars, which makes oil more expensive in relative terms when a country’s currency suffers a dive against the Dollar. Ultimately, this cuts into demand. Market volatility will remain, since supplies may be cut in response, or interrupted for other reasons.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on the NYMEX at $67.42/b today. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices recovered by $0.79/b (1.17%.) At their lowest point yesterday morning, prices fell below $66/b. Although these low prices did not last, it is noteworthy that WTI futures prices have not opened below $66/b since June 22nd. Prices currently are trending back up. The latest price is $68.25/b.
DIESEL
Diesel opened on the NYMEX at $2.1437/gallon today. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices rose by 2.51 cents/gallon (1.17%.) Prices currently are trending up. The latest price is $2.1766/gallon.
GASOLINE
Gasoline opened on the NYMEX at $2.0275 today. Over the last 24-hour period from 9AM EST to 9AM EST, gasoline prices rose by 1.19 cents/gallon (0.93%.) Prices currently are continuing to recover. The latest price is $2.0658/gallon.
