Fuels Market Watch 24

Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.

FUEL MARKETS TODAY – Market Overview

Crude oil and refined product futures prices opened with gains this morning, which could lead to a weekly finish in the black if prices hold today. WTI (West Texas Intermediate) crude forward prices opened at $52.83/b today, a rebound of $1.63 (3.18%) from yesterday’s opening price of $51.20/b. Gasoline and diesel also opened with gains this morning. However, futures prices for crude, gasoline and diesel appear to be weakening again this morning.

Oil prices have been variable this week. Crude oil, gasoline, and diesel all showed a price pattern that alternated up on Monday, down on Tuesday, up on Wednesday, down on Thursday, and up on Friday. The result is that today’s prices are little changed from Monday’s prices. Although a finish in the black remains possible this week, concerns over the global economy are weighing on equities markets today. The oil complex appears to be following equities markets back down.

November data on China’s economy was released, and it showed slowdowns in retail sales and industrial output. The numbers were worse than expected. They may add to China’s motivation to make concession in the U.S.-China trade war. But exultation in the U.S. should be constrained by its own set of worries. The Dow Jones Industrial average opened today down by 191 points (0.78%.) Moreover, European markets are struggling. U.K. Prime Minister Theresa May returned from her meeting with the European Union (EU) with little progress on Brexit. France’s economy may have contracted as the Yellow Vest protests continued, and Germany’s economic performance may be lagging expectations.

GASOLINE

Gasoline opened on the NYMEX at $1.4801/gallon today, a jump of 5.78 cents (3.88%) from yesterday’s opening price of $1.4223 cents/gallon. Gasoline prices have alternated up, down, up, down, and up each day this week, so that today’s price is essentially unchanged from Monday’s price. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices rebounded by 4.73 cents/gallon (3.32%.) Currently, gasoline prices appear to be weakening, and they are in the range of $1.44-$1.46/gallon. The latest price is $1.4526/gallon.

DIESEL

Diesel opened on the NYMEX at $1.8838/gallon today, up by 3.13 cents (1.66%) from yesterday’s opening price of $1.8535/gallon. Diesel prices have alternated up, down, up, down, and up each day this week, so that today’s price is essentially unchanged from Monday’s price. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices rose by 4.14 cents/gallon (2.25%.) Currently, diesel prices are volatile with a downward bias, and they are hovering in the range of $1.86-$1.89/gallon. The latest price is $1.8711/gallon.

WEST TEXAS INTERMEDIATE

WTI (West Texas Intermediate) crude forward prices opened at $52.83/b today, a rebound of $1.63 (3.18%) from yesterday’s opening price of $51.20/b. Over the last 24-hour period from 9AM EST to 9AM EST, crude futures prices rose by $1.86/b (3.67%.) WTI crude oil prices so far have managed to stay above the $52/b mark, and a finish above $52.03/b will result in another week in the black. Prices appear to be weakening this morning, however. The latest price is $52.10/b.