Fuels Market Watch 24

Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.

FUEL MARKETS TODAY – Market Overview

Crude oil prices rose again this morning. WTI (West Texas Intermediate) crude forward prices opened at $54.28/b today, up by $1.04 (1.95%) from yesterday’s opening price of $53.24/b. Gasoline and diesel futures prices opened higher also today, by 2.82% and 0.80% respectively. Currently, prices are steady as contracts move to the next forward month. Several factors are pointing to strong markets today.

First, the Energy Information Administration (EIA) released official statistics on weekly supply, and the data were significantly more bullish than expected. The EIA reported an addition of 0.919 million barrels (mmbbls) to crude inventories, less than half of what had been reported earlier by the American Petroleum Institute (API,) which had reported a 2.1-mmbbl addition. The EIA also reported drawdowns from gasoline and diesel inventories of 2.235 mmbbls and 1.122 mmbbls respectively, whereas the API had reported additions of 2.2 mmbbls and 0.211 mmbbls. In total, the EIA data show a drawdown of 2.438 mmbbls from inventories, while the API report showed an addition totaling 4.509 mmbbls.

Second, the Federal Open Market Committee (FOMC) announced that it would not raise interest rates this quarter, and Fed Chair Jerome Powell’s remarks were interpreted as signaling that rate hikes may be over for the year.

Third, U.S. President Trump will meet with China’s Vice Premier Liu He in the Oval Office today to continue trade talks. Both sides have emphasized that they are far from agreement on issues of intellectual property and market access, but any signs of progress are likely to raise market hopes.

GASOLINE

Gasoline opened on the NYMEX at $1.3925/gallon today, up by 3.97 cents (2.82%) from yesterday’s opening price of $1.3528 cents/gallon. Over the past 24 hours from 9AM EST to 9AM EST, gasoline prices increased by 2.46 cents (1.79%.) Prices currently are strong, with contracts moving to the next month. The latest price is $1.4075/gallon.

 
DIESEL

Diesel opened on the NYMEX at $1.9104/gallon today, up by 1.53 cents (0.8%) from yesterday’s opening price of $1.8951/gallon. Over the past 24 hours from 9AM EST to 9AM EST, diesel prices rose by 1.01 cents (0.53%.) Diesel prices currently are stable, and contracts are moving to the next month. The latest price is $1.9124/gallon.

 
WEST TEXAS INTERMEDIATE

WTI (West Texas Intermediate) crude forward prices opened at $54.28/b today, up by $1.04 (1.95%) from yesterday’s opening price of $53.24/b. Over the past 24 hours from 9AM EST to 9AM EST, WTI crude prices rose by $0.58 (1.08%.) Prices have risen as contracts move to the forward month, holding above the $54.50/b mark. The latest price is $54.78/b.