Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Crude oil prices opened significantly lower this morning, but news about sanctions on Venezuela is causing a quick upsurge. WTI (West Texas Intermediate) crude forward prices opened at $52.12/b today, down by $1.44 (2.69%) from yesterday’s opening price of $53.56/b. Gasoline and diesel futures prices opened significantly lower today, by 3.51% and 2.5% respectively. However, the downward movement has ended this morning. Crude, diesel, and gasoline prices are spiking back up, regaining all of the ground lost yesterday, and likely continuing higher today.
Prices dropped yesterday in concert with a plunge in stock markets. The Dow Jones Industrial Average dropped by nearly 209 points. China’s economic data continues to give warning signs about the global economy in 2019. The upcoming U.S.-China trade talks will have an added note of tension because of U.S. charges against Chinese telecommunications company Huawei. WTI crude prices dropped as low as $51.33/b yesterday.
The reversal in oil prices came as the U.S. announced that it would place sanctions on Venezuela’s oil exports. The U.S. and roughly twenty other countries have recognized opposition party leader Juan Guido as Venezuela’s Interim President, declaring the re-election of Nicolas Maduro as illegitimate. Venezuelan crude will still be allowed as feedstock in the CITGO refinery in Texas, but the revenues will be shunted to blocked accounts. The goal is to further undermine the Maduro administration by blocking access to oil revenue. This is a major development, capable of causing significant volatility in oil prices today.
Gasoline opened on the NYMEX at $1.3369/gallon today, down significantly by 4.88 cents (3.51%) from yesterday’s opening price of $1.3857 cents/gallon. Over the past 24 hours from 9AM EST to 9AM EST, gasoline prices dropped by 2.59 cents (1.89%.) Prices currently are rising, regaining levels of $1.35-$1.37/gallon. The latest price is $1.3671/gallon.
Diesel opened on the NYMEX at $1.8402/gallon today, down significantly by 4.72 cents (2.5%) from yesterday’s opening price of $1.8874/gallon. Over the past 24 hours from 9AM EST to 9AM EST, diesel prices rose by 1.52 cents (0.82%.) Diesel prices currently are rising, back to the range of $1.87-$1.90/gallon they had held for most of last week. The latest price is $1.89/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude forward prices opened at $52.12/b today, down by $1.44 (2.69%) from yesterday’s opening price of $53.56/b. Prices yesterday dipped as low as $51.33/b. Over the past 24 hours from 9AM EST to 9AM EST, WTI crude prices declined slightly by $0.04 (0.08%.) Prices are heading up currently, rising sharply back above the $53/b mark. The latest price is $53.41/b.