Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Yesterday brought a long-awaited market pop. Investors returned to markets, seeking After-Christmas sales. The Dow Jones Industrial Average rebounded by 1086 points (4.98%.) WTI (West Texas Intermediate) crude forward prices opened at $46.58/b today, a recovery of $3.73 (8.7%) from yesterday’s opening price of $42.85/b. Gasoline forward prices gained 8.19 cents/gallon (6.06%) at today’s opening. Diesel forward prices opened with a gain of 7.01 cents/gallon (4.0%) today. Currently, oil prices are easing once again, but their levels remain well above pre-Christmas prices.
Market volatility remains the norm today. Yesterday, the Dow Jones opened with a recovery of over 1086 points. This was the largest daily point gain ever, a welcome respite from other record-breaking news that all seemed to be on the negative side recently. The S&P 500 rose by 5%, and the Nasdaq was up by 5.8%, which pulled it out of bear territory.
Today, however, trading is volatile, with Wall Street sinking again by 276 points (1.21%) upon opening. Even with Wednesday’s comeback, the S&P 500 is close to entering a bear market, which would end the longest bull market in history. Stocks in 2018 are headed for their worst year since 2008, the outset of the Great Recession.
Oil prices bounced back yesterday, following equities markets. However, markets remain concerned about the current oil glut, and the prospect of weak demand in 2019. Equities markets remain battered, and yesterday’s bounce-back is not proof of a lasting recovery. Currently, crude, gasoline, and diesel prices have fallen off from the initial peak. All are trending down as they struggle to keep at least a portion of their gains.
Gasoline opened on the NYMEX at $1.3419/gallon today, a jump of 8.19 cents (6.06%) from yesterday’s opening price of $1.26 cents/gallon. Over the past 24 hours from 9AM EST to 9AM EST, gasoline prices rose by 5.97 cents (4.75%.) Gasoline prices are trading up and down currently, working to hold the gains, but the overall trend is down. The latest price is $1.3217/gallon.
Diesel opened on the NYMEX at $1.7411/gallon today, a gain of 7.01 cents (4.0%) from yesterday’s opening price of $1.671/gallon. Over the past 24 hours from 9AM EST to 9AM EST, diesel prices rose by 6.62 cents (3.99%.) Diesel prices currently are trending down. The latest price is $1.719/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude forward prices opened at $46.58/b today, a rebound of $3.73 (8.7%) from yesterday’s opening price of $42.85/b. Yesterday’s opening price was the lowest opening price since February 2016. Until just the past two weeks, WTI lows have not dipped below $50/b, much less below $43/b. Over the past 24 hours from 9AM EST to 9AM EST, WTI crude prices rose by $2.63/b (6.12%.) Prices have fallen off of yesterday’s peak, and they are trending down currently. The latest price is $45.44/b.