Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil prices continued to sink at today’s market opening, though prices are currently stable. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $62.70, down by $0.29 from yesterday’s opening price of $62.99/b. This was the sixth day in a row that crude prices have fallen. Gasoline futures prices opened lower in this session as well, while diesel futures prices bounced back. Trading is expected to unpredictable today, with markets waiting direction from U.S. midterm elections.

Yesterday’s official renewal of sanctions on Iran did not cause a price increase. Over the past four weeks, crude and product futures prices have fallen: WTI crude by over $11/barrel, diesel prices by over 22 cents/gallon, and gasoline prices approximately 38 cents/gallon.

The eight countries receiving temporary exemptions from the sanctions have been announced: China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey. These countries already had cut imports of Iranian crude for November deliveries, so Iranian exports in November will be well below historical levels. But the exemptions will allow some imports for 180 days. Reuters reported that these eight countries accounted for over 80% of Iran’s oil exports in 2017. Therefore, Iranian exports are expected to resume in December, softening the price outlook. It remains to be seen whether the U.S. resumes its hard-line, no-exceptions attitude towards Iran after the elections and the holidays.