Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Oil prices are heading down today. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $69.55, down by $0.05 from yesterday’s opening price of $69.60/b. Current WTI prices have fallen below $68/b. It has been six weeks since WTI prices have closed below $68/b. Gasoline futures prices also opened slightly lower this morning, though diesel futures prices rose. All three are heading down this morning.

Global stock markets are heading down today. In the U.S., quarterly earnings reports were disappointing in many sectors, but a mixture in others, suggesting that today will bring volatile trades. The Fed will release its Beige Book tomorrow, which may give direction to the market. Internationally, Asian stock markets opened mainly lower today, which is likely to weigh down other regional markets. Investors are concerned over Saudi Arabia’s unfolding diplomatic crisis, along with Italy’s budget (the European Commission may make a decision today,) Brexit, and emerging market weakness.

Saudi Arabia’s Energy Minister, Khalid al-Falih, continued to calm concerns over oil market tightness. Despite rising diplomatic tension between the Kingdom and many (if not most) Western governments, the Minister spoke out against launching an oil embargo as a response to any potential sanctions.

Moreover, Mr.al-Falih reportedly told Tass, a Russian news agency, that Saudi Arabia planned to raise its crude production to 11 million barrels per day (mmbpd,) up from its current level of 10.7 mmbpd. Saudi Arabia’s Future Investment Initiative conference begins today, and a number of ventures will be announced despite the absence of some notable international business leaders.