Fuels Market Watch 24

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.