Fuels Market Watch 24

Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.

FUEL MARKETS TODAY – Market Overview

Crude oil futures prices are heading down again currently, after remaining steady over the weekend and opening slightly higher in this morning’s trading session. WTI (West Texas Intermediate) crude prices opened at $56.72/b today, up by $0.14 (0.25%) from Friday’s opening price of $56.58/b. This is the third session that WTI prices have risen, following a 12-day losing streak that led to Wednesday’s collapse. Gasoline futures prices opened with gains in today’s trading session, while diesel prices opened slightly higher also. However, prices are trending down this morning, given expectations of a downward movement in today’s global equities markets. 

The week of November 12th-November 16th brought hefty losses to the oil complex. WTI opened the week at $60.70/b and ended at $56.46/b, a loss of $4.24/b, or 7.0%. Diesel opened on Monday at $2.1238/gallon and finished the week at $2.0737/gallon, down by 11.01 cents/gallon., or 5.0%. Gasoline opened on Monday at $1.635/gallon and fell to $1.577/gallon at Friday’s close, a drop of 5.8 cents/gallon, or 3.5%. 

Hedge fund managers exited all bullish positions in the futures market, selling the equivalent of 553 million barrels of crude and products over the past seven weeks, in what is said to be the largest reduction since 2013. WTI crude prices over the past three openings settled at a new floor of around $56-$57/b, but forward prices are sagging below $56/b currently. The downward movement is being tempered by the likelihood that OPEC will work to cut production once again, and today’s news that Russia plans to sign a partnership agreement with the group at the OPEC meeting on December 6th in Vienna. Yet developments in global and U.S. markets are weighing on prices today in early trading.

GASOLINE

Gasoline opened on the NYMEX at $1.5778/gallon todaya recovery of 2.23 cents (1.38%from Friday’s opening price of $1.5555/gallon. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices sagged once again, shedding 4.41 cents/gallon (2.77%.Currently, gasoline prices are trending down. The latest price is $1.556/gallon. 

DIESEL

Diesel opened on the NYMEX at $2.0786/gallon todayslightly up by 0.17 cents (0.08%) from Friday’s opening price of $2.0769/gallon. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices fell again by 3.97 cents/gallon (1.88%.) Currently, diesel prices are trending down. The latest price is $2.069/gallon. 

WEST TEXAS INTERMEDIATE

WTI (West Texas Intermediate) crude prices opened on today’s NYMEX session at $56.72/brecovering slightly by $0.14 (1.00%) from yesterday’s opening price of $56.02/b. Over the last 24-hour period from 9AM EST to 9AM EST, crude futures dropped once again by $2.18/b (3.77%.) Currently, crude prices have fallen back below $56/b. The latest price is $55.88/b.