Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil futures prices opened significantly lower today, but currently, there are signs of a rebound. WTI (West Texas Intermediate) crude forward prices opened at $55.83/b today, down by $1.39 (2.43%) from Friday’s opening price of $57.22/b. Gasoline and diesel futures prices also opened significantly lower today, and product prices currently are trending back up.

Oil prices were volatile last week, starting the week strong, plummeting when President Donald Trump tweeted that oil prices were “too high,” recovering midweek, then falling again on Friday. WTI crude forward prices opened on Monday at $57.17/b and closed on Friday at $55.80/b, a drop of $1.37/b (2.5%) for the week. Gasoline prices opened on Monday (March contracts) at $1.5971/gallon and finished Friday (April contracts) at $1.7303/gallon. This was a jump of 13.32 cents/gallon (8.6%;) however, adjusting backward to April contracts on Monday, prices were down by 1.99 cents/gallon (1.2%.) Diesel prices opened on Monday at $2.0282/gallon and closed Friday at $2.001/gallon, down by 2.72 cents/gallon (1.4%.)

Friday’s downturn came upon negative talk about the U.S.-China trade dispute, a negative reaction to perceived showmanship concerning President Trump’s visit with North Korea’s Kim Jong-un, plus data showing a significant slowdown in U.S. manufacturing in February. The manufacturing slowdown followed data showing a 4^th quarter U.S. GDP growth rate of 2.6%, falling below the 3% promised by the Trump administration.

In contrast, today markets are pointing back up, based on upbeat announcements about progress in U.S.-China trade talks. Over the weekend, it was reported that President Donald Trump and President Xi Jinping might sign a trade pact at a summit tentatively scheduled for March 27^th.

Also moving to support oil prices: Baker Hughes released its weekly rig count data on Friday, reporting that the active oil rig count fell by ten, while the active gas rig count rose by one.