Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Crude oil prices continued to fall this morning. WTI (West Texas Intermediate) crude forward prices opened at $53.73/b today, down by $1.13 (2.06%) from yesterday’s opening price of $54.86/b. Gasoline and diesel futures prices opened modestly lower today. Product prices appear to be recovering, though any upward movement will be limited if crude prices continue to ease.
The American Petroleum Institute (API) released its data on U.S. inventories, showing a crude stock build of 2.514 million barrels (mmbbls,) a gasoline stock build of 1.731 mmbbls, and a diesel stock build of 1.141 mmbbls, for a total inventory build of 5.386 mmbbls. Fuel delivery, demand and inventories are expected to be complicated this week because of extreme winter weather in much of the country. Demand for heating oil is expected to tick up, while on the other hand, motor fuels demand will be below normal because the weather has kept people at home. The Energy Information Administration (EIA) will release official statistics later today.
U.S. President Trump’s State of the Union address gave few new hints about large issues such as the U.S.-China trade war and the U.S.-Mexico border wall. The president called for bipartisanship, and he did not announce that he would use emergency powers to get funding for the wall. The threat of another government shutdown looms in ten days. Perhaps because markets found few reasons for optimism, Treasury Secretary Steven Mnuchin later reiterated positive statements about the last week’s trade talks with Chinese Vice Premier Liu He. Wall Street is expected to open modestly up today.
Gasoline opened on the NYMEX at $1.4241/gallon today, down by 1.54 cents (1.06%) from yesterday’s opening price of $1.4395 cents/gallon. Over the past 24 hours from 9AM EST to 9AM EST, gasoline prices declined by 0.29 cents (0.2%.) Prices currently are recovering. The latest price is $1.422/gallon.
Diesel opened on the NYMEX at $1.8964/gallon today, down by 1.58 cents (0.82%) from yesterday’s opening price of $1.9122/gallon. Over the past 24 hours from 9AM EST to 9AM EST, diesel prices declined slightly by 0.11 cents (0.06%.) Diesel prices currently are stabilizing. The latest price is $1.8872/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude forward prices opened at $53.73/b today, down by $1.13 (2.06%) from yesterday’s opening price of $54.86/b. Over the past 24 hours from 9AM EST to 9AM EST, WTI crude prices declined by $0.43 (0.79%.) Prices continued to weaken overnight, yielding the $54/b level yesterday, and dipping below $53/b briefly overnight. Currently, however, there is some buying interest, which has halted the downward price movement. The latest price is $53.30/b.