Fuels Market Watch 24

Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.

CRUDE

Over the past 24 hours, WTI (West Texas Intermediate) crude prices sagged, dragged down by global financial concerns, a strong U.S. Dollar, and an expected buildup in U.S. oil inventories. Prices in today’s trading session opened below $67/b. Diesel prices are following crude’s downward path, though gasoline prices have been stable.

Global financial markets remain unsettled today. The Turkish Lira pulled out of its dive, but it remains severely weakened relative to the U.S. Dollar, as do several other emerging market currencies. Global equites have moved into “safe havens” such as the U.S. Dollar, the Japanese Yen, and U.S. Treasuries. Since oil is denominated in the U.S. Dollar, a strong Dollar makes oil relatively more expensive in other countries.

Oil prices also have been pressured from the release of the American Petroleum Institute (API) forecast of U.S. oil inventories, which anticipates a build of 3.66 million barrels. An earlier industry forecast predicted a stock drawdown of 2.499 million barrels. Official statistics will be released by the U.S. Energy Information Administration (EIA) later today.

WEST TEXAS INTERMEDIATE

WTI (West Texas Intermediate) crude prices opened on the NYMEX at $66.62/b today—the first time the market has opened this low since June 22nd. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices fell by $0.73/b (1.08%,) which handed back the price recovery seen in Tuesday’s trading session. Prices currently are continuing to decline. The latest price is $66.03/b.

DIESEL

Diesel opened on the NYMEX at $2.1220/gallon today. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices fell by 1.53 cents/gallon (0.71%.) Prices currently are trending down. The latest price is $2.1043/gallon.

GASOLINE

Gasoline opened on the NYMEX at $2.0259 today. Over the last 24-hour period from 9AM EST to 9AM EST, gasoline prices edged up slightly by 0.23 cents/gallon (0.11%.) Prices currently are continuing to hold steady. The latest price is $2.0281/gallon.