Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil prices opened lower this morning, unable to recover fully after yesterday’s slump. WTI (West Texas Intermediate) crude forward prices opened at $52.95/b today, down by $1.00 (1.85%) from yesterday’s opening price of $53.95/b. Gasoline and diesel futures prices also opened lower today. Crude and product prices declined yesterday, based on long-term economic and political concerns, and oil prices continued to slide gently overnight. Today, however, prices are volatile, and the overall trend is expected to bring some price recovery.

The U.S. stock market is expected to rebound today, recovering after a selloff yesterday that cut 301.87 points from the Dow Jones Industrial Average. The Nasdaq tumbled 136.87 points, and the S&P 500 shed 37.81 points. Oil prices subsided as well, with WTI crude futures dropping by a dollar per barrel. The selloff was attributed largely to global economic concerns. The International Monetary Fund (IMF) cut its forecast of 2019 global growth from 3.7% to 3.5%, and cut the 2020 forecast to 3.6%, down from 3.8%.

However, today brought news of strong earnings reports from several key companies. The major U.S. index futures are pointing to a higher opening on Wall Street. Investors seeking reasons for optimism may interpret this as a sign that the U.S. economy remains strong despite the U.S.-China trade war. In an effort to reduce the trade surplus, China has offered to purchase more U.S. goods, including crude oil. But the U.S. is focusing on deeper reforms in China, including how it handles intellectual property. Experts believe that the two countries remain far away from an agreement.