Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil prices today are heading down, taking a break from the eight-day upward streak that brought prices back to their mid-December levels. WTI (West Texas Intermediate) crude forward prices opened at $51.73/b today, down by $0.55 (1.05%) from Friday’s opening price of $52.28/b. Last week, crude oil reclaimed highs of $52-$53/b, but prices began to subside on Friday. Gasoline and diesel forward prices also opened with losses today. Crude and product prices are trading up and down today, but the overall trend is down. Global markets are sagging as well, as the U.S. federal government remains in shutdown, and the U.S.-China trade war continues. China reported that its exports shrank in December by the most in two years.

The eight-day oil price recovery ended on Friday, but the week nonetheless ended solidly in the black. This was the second week in a row that prices rose. WTI crude prices opened on Monday at $48.30/b and ended on Friday at $51.59/b, a significant increase of $2.86 (5.9%) for the week. Gasoline prices opened on Monday at $1.356/gallon and closed Friday at $1.4007/gallon, an increase of 5.41 cents (4.0%) for the week. Diesel prices opened on Monday at $1.7809/gallon and closed Friday at $1.8797, up by 9.87 cents (5.5%) for the week.

Global markets continue to be at risk from the U.S.-China trade war. Stock markets around the world opened weakly today, and the U.S. stock market opened with a loss of 180 points. China reported that its December 2018 exports had fallen by the most in two years, and its imports declined as well. Market confidence, which had been recovering, sank once again. European markets also are shaken by continued Brexit turmoil. U.K. Prime Minister Theresa May is likely to face another setback for her proposed Brexit deal.