Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Oil prices remain strong today, though the upward momentum has slowed. WTI (West Texas Intermediate) crude forward prices opened at $48.30/b today, an increase of $1.40 (2.99%) from Friday’s opening price of $46.90/b. Gasoline and diesel forward prices also opened higher today. All are working to hold their gains this morning. Market optimism is strong today, with renewed talks between the U.S. and China on the trade war. The first day of negotiation looks promising, with the surprise appearance of Chinese Vice Premier Liu He heading what was expected to be a lower-ranking delegation.
Crude oil prices finished last week strongly in the black, breaking a three-week losing streak. WTI crude prices opened last Monday, December31st, at $45.22/b and closed on Friday, January 4th, at $47.96/b, a significant gain of $2.74 (6.1%) for the week. Gasoline prices opened on Monday at $1.2929/gallon and closed on Friday at $1.3478/gallon, a gain of 5.49 cents/gallon (4.2%.) Diesel prices opened on Monday at $1.6539/gallon and closed Friday at $1.7692/gallon, a major gain of 11.53 cents/gallon (7.0%.)
On Friday, the Energy Information Administration (EIA) released U.S. weekly supply and demand data, delayed because of the New Year’s holiday. The EIA reported a minuscule addition of 0.007 mmbbls to crude inventories, but a major addition of 6.89 mmbbls to gasoline inventories, and a massive addition of 9.529 mmbbls to diesel inventories. This totaled a huge addition of 16.426 mmbbls to stockpiles. Prices declined only modestly, however, with commodities receiving broad support from steadying equity markets. Earlier, the American Petroleum Institute (API) had reported a drawdown of 4.457 mmbbls from crude oil inventories, an addition of 7.995 mmbbls to gasoline inventories, and an addition of 3.955 mmbbls to diesel inventories, for a total of 7.493 mmbbls added to stockpiles, another bearish set of data.
Gasoline opened on the NYMEX at $1.356/gallon today, up by 1.96 cents (1.40%) from Friday’s opening price of $1.3364 cents/gallon. Over the past 24 hours from 9AM EST to 9AM EST, gasoline prices rose by 1.06 cents (0.77%.) Prices have recovered significantly, and currently they are working to retain price levels of around $1.36-$1.38/gallon. The latest price is $1.3675/gallon.
Diesel opened on the NYMEX at $1.7809/gallon today, up by 5.09 cents (2.82%) from Friday’s opening price of $1.73/gallon. Over the past 24 hours from 9AM EST to 9AM EST, diesel prices rose by 3.12 cents (1.75%.) Diesel prices are continuing to trend up. The latest price is $1.8003/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude forward prices opened at $48.30/b today, an increase of $1.40 (2.99%) from Friday’s opening price of $46.26/b. Over the past 24 hours from 9AM EST to 9AM EST, WTI crude prices increased by $0.95/b (1.97%.) WTI crude prices have remained firmly above $48/b, and they have peaked above $49/b today before subsiding. The latest price is $48.56/b.