Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Oil prices plunged along with the stock market rout over the past two days, but markets appear to be recouping some of the loss today. Crude forward prices slid below $71/b before recovering slightly this morning. Crude is now trading in the range of $71.00-$71.75/b. The gains of the past three weeks have largely vanished. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $70.99/b, a major downward adjustment of $1.69 from yesterday’s opening price of $72.68/b. Diesel and gasoline futures prices also opened sharply down. Prices are stabilizing currently, but oil prices are headed for a week in the red, following a four-week climb.
The stock market opened with a rebound this morning, with the Dow Jones recovering by 383 points, a welcome relief after a two-day rout. Investors are trying to comfort themselves by viewing the plunge as a necessary downward correction. Markets indeed had grown ebullient, particularly given the challenges facing national and global economies. Indonesian President Joko Widodo found the international tensions analogous to the “Game of Thrones,” where the “Great Houses” fought amongst themselves, ignoring the coming of an “evil winter.” He concluded that “victory or defeat in wars always brings the same result—destruction.”
The Energy Information Administration (EIA) released official oil supply data yesterday. The EIA reported a crude stock build of 5.987 mmbbls, a gasoline stock build of 0.951mmbbls, and a diesel inventory drawdown of 2.666 mmbbls. The net buildup of oil in storage was 4.272 mmbbls. The American Petroleum Institute (API) earlier had presented a much more bearish picture, with a massive (9.75 million barrel) buildup of crude oil stocks.
Gasoline opened on the NYMEX at $1.934 today, sharply down by 6.4 cents (3.2%) from yesterday’s opening. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices dropped by 3.38 cents/gallon (1.70%.) Gasoline prices recovered some of the loss in early trading, and prices are stabilizing currently. The latest price is $1.9449/gallon.
Diesel opened on the NYMEX at $2.3345/gallon today, a drop of 5.05 cents (2.12%) from yesterday’s opening. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices fell by 2.45 cents/gallon (1.04%.) Currently, prices are stabilizing. The latest price is $2.3326/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on today’s NYMEX session at $70.99/b, down significantly by $1.69 (2.33%) from yesterday’s opening. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices declined by $0.59 (0.82%.) Crude prices recovered somewhat in early trading, and prices are stable currently. The latest price is $71.40/b.