Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Crude oil futures prices collapsed again after a brief rally yesterday. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $58.88/b, a drop of $1.82 from yesterday’s opening price of $60.70/b. It was the lowest opening price since late-December 2017. Today was the eleventh day in a row that crude prices have fallen. Gasoline and diesel futures prices also opened significantly lower in today’s trading session.
Last Friday, crude oil officially entered bear market territory. WTI crude forward prices have finished in the red for five consecutive weeks. WTI opened at a high opening price of $76.18/b on October 4th, and as of this morning’s trading session, an astounding $17.30/b has been slashed from forward month prices.
Yesterday brought a brief oil price rally, following reports of OPEC’s meeting this weekend in Abu Dhabi. Saudi Oil Minister Khalid al-Falih reported that global oil supplies needed to be cut by 1 million barrels per day (mmbpd) in 2019 from October levels, and that Saudi Arabia planned to take care of half of this as early as December. U.S. President Donald Trump quickly tweeted his protests to any cuts, saying that “Oil prices should be much lower based on supply!” The price rally ended, though it is unclear how much pressure a U.S. President can or should exert on OPEC production levels.
The drop in oil prices also is part of a greater slump in equities, as shares Apple and many of its suppliers dropped yesterday, pulling down the tech sector. The Dow Jones Industrial Average plunged by over 600 points. Asian equities markets opened lower this morning. The resumption of trade talks between the U.S and China currently seems to be blunting a portion of the selloff.
Gasoline opened on the NYMEX at $1.6166/gallon today, down by 1.84 cents (1.11%) from yesterday’s opening price of $1.635/gallon. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices fell by 3.66 cents/gallon (2.22%.) Currently, gasoline prices are trending down. The latest price is $1.6039/gallon.
Diesel opened on the NYMEX at $2.1355/gallon today, a significant drop of 4.83 cents (2.19%) below yesterday’s opening price. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices fell by 3.14 cents/gallon (1.45%.) Currently, the downward trend in diesel prices appears to be slowing, with prices holding above $2.13/gallon. The latest price is $2.1357/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on today’s NYMEX session at $58.88/b, down by $1.82 (3.0%) from yesterday’s opening price of $60.70/b. Over the last 24-hour period from 9AM EST to 9AM EST, crude futures dropped by $1.94/b (3.19%.) Currently, crude prices are stagnating. The latest price is $58.79/b.