Fuels Market Watch 24

CRUDE

Over the past 24 hours, WTI (West Texas Intermediate) crude prices made another sharp downward correction, followed by a period of sideways trading. The price drop followed news of a significant addition to oil held in U.S. inventories. Concerns over global finances and the trade war continued to shake faith in economic growth, though today’s news includes a plan for a low-level meeting between China and the U.S., which could mollify markets. WTI prices in today’s trading session opened below $65/b, the lowest opening price since June 5th. Diesel and gasoline prices followed crude oil’s path, dropping sharply yesterday then stabilizing.

Oil prices dropped upon the release of official statistics on U.S. oil inventories. The U.S. Energy Information Administration (EIA) reported significant additions to oil stockpiles: 6.805 million barrels of crude oil and 3.566 million barrels of diesel. Gasoline inventories were drawn down by 0.740 million barrels. In total, 9.631 million barrels of oil went into inventory. This included 1.643 million barrels at Cushing, Oklahoma. Prices weakened yesterday when the American Petroleum Institute (API) reported a crude stock build of 3.66 million barrels, a diesel build of 1.94 million barrels, and a small drawdown of 0.583 million barrels of gasoline, adding to a net build of 5.017 million barrels.

The official EIA statistics on oil stocks were much more bearish than industry forecasts had expected. During the second quarter of 2018, U.S. crude stockpiles had been drawn down by 10.8 million barrels, suggesting a balance between supply and demand. However, in the third quarter to date (to August 10th,) 8.9 million barrels of crude have been added to inventories, pointing to oversupply once again.

WEST TEXAS INTERMEDIATE

WTI (West Texas Intermediate) crude prices opened on the NYMEX at $64.95/b today. This was the lowest market opening price since June 5th. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices dropped by $1.28/b (1.93%.) Prices currently are stabilizing, and they have crept back above the $65/b mark. The latest price is $65.16/b.

DIESEL

Diesel opened on the NYMEX at $2.0912/gallon today. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices fell by 2.54 cents/gallon (1.19%.) Prices currently are stabilizing, but they may continue to trend downward if crude prices flag. The latest price is $2.0958/gallon.

GASOLINE

Gasoline opened on the NYMEX at $1.9910 today. This was one of the lowest opening prices over the past four months. In the daily trading sessions since April 10th, there have been only three days when gasoline prices have opened below $2/gallon. Over the last 24-hour period from 9AM EST to 9AM EST, gasoline prices dropped by 3.08 cents/gallon (1.51%.) Prices currently are continuing to trend down slightly. The latest price is $1.9889/gallon.