Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil futures prices continue to creep back up today. WTI (West Texas Intermediate) crude forward prices opened at $56.45/b today, up by $0.62 (1.11%) from yesterday’s opening price of $55.83/b. Gasoline futures prices also opened modestly higher today, while diesel prices declined. Crude and product prices currently appear to be stable and possibly are trending back up.

The U.S.-China trade war continues to puzzle markets. Some analysts believe that a deal already is priced into the market, while others parse every statement made by the government negotiators and officials. Optimism rose upon this weekend’s upbeat statements about progress. It was reported that President Donald Trump and President Xi Jinping might sign a trade pact at a summit tentatively scheduled for March 27th. Secretary of State Mike Pompeo was quoted as saying that the U.S. and China were “on the cusp” of making a deal. However, he appeared to backtrack when asked in an interview whether President Trump would walk away from any deal that was not perfect. He responded yes, that the deal had to be right.

China revised downward its forecast of for 2019 economic growth, placing it in the 6%-6.5% range, compared with 6.6% in 2018. The forecast rate is reportedly the lowest rate in nearly three decades.

U.S. economic indices weakened yesterday upon expectations that December construction spending will be weaker than expected. Data from the Commerce Department was delayed by the government shutdown, but it is expected to show a 8.7% drop in December new home sales.

Winter weather is wreaking havoc in many parts of the country. Alabama is fighting to recover from a series of tornadoes, and now is suffering from early morning freezes. Chilly air is moving as far south as Texas. Winter Storm Scott hit the Northeast, snarling traffic, causing school closures, flight cancelations, and an airplane accident when ice and snow caused a plane to slide off a runway in Maine. Approximately 60,000 customers in the Northeast were reported to be without power yesterday. Flood watches are in effect in areas of New York and Virginia. Another winter storm from the Pacific is bringing snow, rain, and more flooding to California.