Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
Over the past 24 hours, WTI crude prices reversed their downward slide, and they are now back hovering in the $68.50-$69.00/b range. Gasoline and diesel prices followed crude’s rebound. Crude prices appear to be leveling off this morning, though gasoline and diesel prices appear to be maintaining a slight upward momentum.
Crude oil prices are to be trading in a bandwidth of $68-$69/b currently. Prices are being supported by signs of tight supply and the prospect of Iranian sanctions. However, upward movements in price are being moderated by announcements from OPEC and Russia that they will continue to ramp up production. U.S. production also is expected to continue to rise in coming months, though July production hit a plateau. The Baker Hughes rig count will be published today, shedding light on the attitude of U.S. producers.
Global demand continues to be difficult to predict, largely because of the unpredictable direction and duration of the U.S.-China trade war. China announced, unsurprisingly, that it would not support the Trump Administration’s efforts to isolate Iran by cutting imports of Iranian crude oil, but it did pledge not to increase imports.
The U.S. Bureau of Labor Statistics (BLS) just released the Employment Situation report for July 2018. The unemployment rate edged down to 3.9%. The U.S. has had extremely low rates of unemployment, with rates of 3.8% in May and 4.0% in June.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on the NYMEX at $68.99/b today. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices rebounded by $1.15/b. Prices are now stabilizing. The latest price is $68.84/b.
Diesel opened on the NYMEX at $2.1217/gallon today. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices recovered by 2.15 cents/gallon. Prices are currently moving up. The latest price is $2.1303/gallon.
Gasoline opened on the NYMEX at $2.0631 today. Over the last 24-hour period from 9AM EST to 9AM EST, gasoline prices rose by 1.25 cents/gallon. Prices are currently trending up. The latest price is $2.0759/gallon.