Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Oil futures prices all opened lower this morning, after falling steeply yesterday. However, prices currently are showing a modest uptick, based partly on the continuation of trade talks between the U.S. and China. Although a telephone conversation between officials cannot be called a success, it at least was not a complete scuppering of the cease fire. WTI (West Texas Intermediate) crude forward prices opened at $50.89/b today, a drop of $1.14 (2.19%) from yesterday’s opening price of $52.03/b. Gasoline and diesel also opened with losses this morning. All are recovering modestly at present.
Global equities markets appeared relieved by news that the U.S. and China are trying to keep their trade war negotiations separate from their dispute over the arrest of a top official from Huawei Technologies Co Ltd., Chief Financial Officer Meng Wanzhou. China may take the step of reducing tariffs on imports of U.S.-made cars.
Oil prices also received support from an unplanned outage in Libya. The National Oil Company (NOC) declared force majeure on exports from El Sharara oilfield after militants seized the facility over the weekend. NOC estimates the loss at 315,000 bpd from Sharara, plus an additional loss of 73,000 from the El Feel oilfield. Libya received an exemption from the OPEC production cut agreement that is now being planned.
Gasoline opened on the NYMEX at $1.4232/gallon today, down by 4.08 cents (2.74%) from yesterday’s opening price of $1.464 cents/gallon. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices fell by 3.12 cents/gallon (2.14%.) Currently, gasoline prices have recovered to the range of $1.43-$1.45/gallon. The latest price is $1.4386/gallon.
Diesel opened on the NYMEX at $1.846/gallon today, a drop of 3.26 cents (1.72%) from yesterday’s opening price of $1.8786/gallon. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices declined by 0.88 cents/gallon (0.47%.) Currently, diesel prices are recovering, and they are in the range of $1.85-$1.88/gallon. The latest price is $1.8632/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude forward prices opened at $50.89/b today, a drop of $1.14 (2.19%) from yesterday’s opening price of $52.03/b. Over the last 24-hour period from 9AM EST to 9AM EST, crude futures rose slightly by $0.20/b (0.39%.) WTI crude oil prices have reclaimed the $52/b mark currently, and the gain appears to be holding. The latest price is $52.11/b.