Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil prices are easing slightly this morning, following last week’s significant gains. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $73.29/b, up by $1.11 from Friday’s opening. Last week, Monday and Tuesday brought a price surge of around $2/b, Wednesday brought downward correction, Thursday brought stabilization and recovery, and Friday brought a price surge which propelled WTI prices above the $73/b level for the first time since late-June and early July. Gasoline and diesel prices opened with gains today, following crude.

The oil complex performed strongly last week, with crude and products solidly in the black. WTI crude futures prices started the week at $71.14/b and ended at $73.25/b, a gain of $2.11 (3.0%.) Diesel prices opened on Monday at $2.2275/gallon and ended Friday at $2.3485/gallon, a jump of 12.1 cents/gallon (5.4%.) Gasoline prices opened Monday at $2.021/gallon and closed on Friday at $2.0857/gallon, up significantly by 6.47 cents/gallon (3.2%.)

The U.S. and Canada came to last-minute agreement on a successor to the North American Free Trade Agreement (NAFTA.) The new agreement will be called the U.S.-Mexico-Canada Agreement, or USMCA. Mexico’s President Enrique Pena Nieto leaves office on December 1st, so the agreement now can receive his signature before he leaves office. U.S. President Trump criticized NAFTA as a terrible deal for the U.S. The USMCA will move to congressional-level deliberations in the new year in all three countries, where the process is sure to bring new debate. Although the process is not yet complete, it is viewed as a success for trade. The Mexican peso and the Canadian dollar rose upon the news, as did U.S. futures markets.