Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Crude oil futures prices collapsed yesterday, opening at the lowest price this year to date. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $55.27/b, a sharp drop of $3.61 (6.13%) from yesterday’s opening price of $58.88/b. This was the twelfth day in a row that crude prices have fallen, and it was the largest single daily drop at market opening all year. It also was the lowest opening price in nearly three years. Gasoline and diesel futures prices also opened with major losses in today’s trading session.
Last Friday, crude oil officially entered bear market territory. WTI opened at a high opening price of $76.18/b on October 4th, and as of this morning’s trading session, a mind-boggling $20.91/b (27.4%) has been slashed from forward month prices. This morning’s price drop was the largest drop at opening all year to date.
On Monday, the downward slide in oil prices was briefly tempered by Saudi Arabia’s announcement that it planned to cut output by 500,000 bpd next month to start combating oversupply. U.S. President Donald Trump quickly retorted that prices should be lower. OPEC is sure to discuss market-tightening measures at its upcoming meeting, but investors remained in sell-off mode.
Helping to support volatile global equities markets, the UK and the European Union have at long last developed a framework for moving ahead with a Brexit deal. UK Prime Minister Theresa May will meet with her cabinet today to discuss the draft deal.
Gasoline opened on the NYMEX at $1.5393/gallon today, down sharply by 7.73 cents (4.74%) from yesterday’s opening price of $1.6166/gallon. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices dropped sharply by 6.05 cents/gallon (3.76%.) Currently, gasoline prices appear to be in recovery. The latest price is $1.5626/gallon.
Diesel opened on the NYMEX at $2.0635/gallon today, a major drop of 7.2 cents (3.35%) below yesterday’s opening price. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices fell by 4.25 cents/gallon (1.99%.) Currently, the downward trend in diesel prices appears to have been arrested, and prices are recovering. The latest price is $2.1124/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on today’s NYMEX session at $55.27/b, collapsing by $3.61 (6.13%) from yesterday’s opening price of $58.88/b. Over the last 24-hour period from 9AM EST to 9AM EST, crude futures dropped by $2.91/b (4.94%.) Currently, crude prices appear to have hit bottom, and they have climbed back above $56/b. The latest price is $56.51/b.