Fuels Market Watch 24

FUEL MARKETS TODAY – Market Overview

Over the past 24 hours, WTI (West Texas Intermediate) crude prices sagged during the middle of the period, before recovering in today’s early trading. Overall, WTI prices weakened slightly, though they returned to the $68.50-$69.00/b range. WTI prices in today’s trading session opened at $68.54/b, down by $0.39 from yesterday’s opening. Crude prices currently are holding steady. Gasoline and diesel prices followed crude’s pattern: a mid-day sag, followed by a gradual recovery in today’s early trading. Gasoline and diesel also opened lower today. Crude prices currently are trending back up, while product prices appear to be working to cling to their upward momentum after recouping yesterday’s slight decline.

Although there are few details on the U.S. trade agreement with Mexico, and there is no agreement at all yet with Canada, markets still appear seem eager to find a reason for optimism. There is a sentiment that all the U.S. needs is some sort of agreement in principle on the future of some sort of a deal among the three North American countries, then it can turn attention back to China.

Oil prices have received some support from looming sanctions on Iran, with many countries already reducing imports of Iranian crude. This will remove some supply. The U.S. is planning to release 11 mmbbls of crude from the Strategic Petroleum Reserve to minimize price impact. Earlier this year, the Trump Administration also hoped to sell SPR crude to raise money for other government plans. Early information from the American Petroleum Institute (API) indicates a tiny (0.038 mmbbls) buildup of U.S. crude inventories. The U.S. Energy Information Administration (EIA) will release official statistics late today.