Fuels Market Watch 24

Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.

FUEL MARKETS TODAY – Market Overview

Crude oil futures prices are trending down today, though the oil complex in general has held value in relation to Friday’s broader market selloff. WTI (West Texas Intermediate) crude forward prices opened today at $58.98/b today, down by $0.89 (1.49%) from Friday’s opening price of $59.87/b. Gasoline and diesel futures prices also opened with losses today, though gasoline prices were down only modestly. Prices today are volatile, with downward pressure being exerted by Wall Street opening this morning with a continuation of Friday’s slide.

Crude oil and gasoline prices finished last week in the black, while diesel prices were down only by a fraction of a cent. WTI crude futures prices opened on Monday at $58.45/b and closed at $59.04/b on Friday, up by $0.59/b for the week (1.0%.) Gasoline forward prices opened on Monday at $1.8535/gallon and closed Friday at $1.9259/gallon, up strongly by 7.24 cents/gallon (3.9%.) Diesel prices opened on Monday at $1.9663/gallon and closed on Friday at $1.9659/gallon, down fractionally by 0.04 cents/gallon (0.02%.)

Crude and gasoline futures prices held value relatively well on Friday, when compared to other equities. Economic data from Europe revealed a larger-than-expected drop in manufacturing activity. Asian markets and Wall Street retreated. The S&P index shed 1.9% on Friday. The Dow Jones Industrial Average dropped by over 460 points. In comparison, oil prices had enjoyed a significant mid-week price rally, set off by the release of weekly statistics from the Energy Information Administration (EIA.) Prices fell on Thursday and Friday, but they fell from levels that were the highest of the year. On Friday, Baker Hughes reported that the active oil rig count fell by 9, and the natural gas rig count fell by one. It was the fifth week in a row that the oil rig count has fallen. This supports oil prices, since it could signal that recent forecasts of U.S. oil production have been overly optimistic.

GASOLINE

Gasoline opened on the NYMEX at $1.9259/gallon today, down slightly by 0.16 cents (0.08%) from Friday’s opening price of $1.9275 cents/gallon. Over the past 24 hours from 9AM EST to 9AM EST, gasoline prices fell by 1.2 cents (0.63%.) Gasoline forward prices currently are volatile, trading between $1.90-$1.93/gallon. The latest price is $1.9175/gallon.

DIESEL

Diesel opened on the NYMEX at $1.9591/gallon today, down by 2.56 cents (1.29%) from Friday’s opening price of $1.9847/gallon. Over the past 24 hours from 9AM EST to 9AM EST, diesel prices crept up slightly by 0.03 cents (0.02%.) Diesel prices are stabilizing currently, trading in the $1.95-$1.98/gallon range. The latest price is $1.9658/gallon.

WEST TEXAS INTERMEDIATE

WTI (West Texas Intermediate) crude forward prices opened at $58.98/b today, down by $0.89 (1.49%) from Friday’s opening price of $59.87/b. Over the past 24 hours from 9AM EST to 9AM EST, WTI crude prices fell by $0.45 (0.76%.) Currently, crude prices are volatile, trading in the range of $58.25/b-$59.00/b. The latest price is $58.74/b.