Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Crude oil futures prices continued to rise at today’s market opening, the fourth consecutive day of gains. WTI (West Texas Intermediate) crude forward prices opened at $62.64/b today, up by $0.83 (1.34%) from yesterday’s opening price of $61.81/b. WTI forward prices have jumped by over $3/barrel since last Friday’s market opening. Gasoline and diesel futures prices also opened with gains today. Global markets are optimistic today about U.S.-China trade talks. Oil prices are holding strong gains, but currently are in a holding pattern, awaiting officials statistics on U.S. supply and demand.

Global markets cooled somewhat yesterday following a sustained rally, but today will bring a resumption of trade talks between the U.S. and China. Chinese Vice Premier Liu He is in Washington DC to meet with his counterparts, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. In Asia, stock markets have opened generally higher today, and Wall Street also is expected to regain some of yesterday’s lost ground. China may be negotiating from a position of strength, since data for March revealed stronger-than-expected manufacturing data. In the U.S., data show that orders for durable goods fell in February, mainly from a reduction in orders for transportation equipment. Payroll processor ADP also reported today that U.S. private sector job growth slowed in March.

The strong upward trend in oil prices slowed upon yesterday’s release of oil inventory data. The American Petroleum Institute (API) reported a 3.0-million barrel (mmbbl) increase in crude oil inventories for the week ending March 29^th. Analysts are predicting that the official statistics will report a drawdown of 0.425 mmbbls. The crude stock build was partly countered by drawdowns of 2.6 mmbbls from gasoline inventories and 0.506 mmbbls from diesel inventories. Oil prices this morning are hovering, awaiting the official statistics from the Energy Information Administration (EIA.)