Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil futures prices are falling this morning, after opening with a slight recovery in today’s trading session. WTI (West Texas Intermediate) crude forward prices opened at $56.43/b today, up by $0.23 (0.41%) from yesterday’s opening price of $56.20/b. Currently, prices have fallen below $55/b and are at three-week lows. Diesel futures prices opened slightly lower today, while gasoline futures prices opened with modest gains. Futures prices for all three are heading down this morning. Thus far today, the data releases have given nothing to motivate oil market bulls.

Crude and product forward prices currently are heading for a finish in the red this week. WTI crude futures prices currently are down by $0.92/barrel (1.6%.) Gasoline futures prices are up by 1.1% for the week, but this is driven mainly by the upcoming switch to low-RVP grades. Diesel forward prices are down by around 2.3% for the week.

Oil prices fell yesterday after statements from the president of the European Central Bank (ECB.) ECB President Mario Draghi warned that economic weakness would continue, saying the global economy was in “a period of continued weakness and pervasive uncertainty.” The ECB downgraded its forecast of 2019 GDP growth. Asian stock markets fell in response, and also upon data showing that Chinese exports were lower than expected in February.

The U.S. Bureau of Labor Statistics (BLS) just released the February Employment Situation report. Job growth ground to a halt in February. Total nonfarm payroll employment rose by only 20,000 jobs, versus economist predictions of 180,000 jobs. The unemployment rate fell to 3.8%.