Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
Over the past 24 hours, WTI crude prices weakened modestly, though prices seem to be pointing back up currently. Gasoline prices eased slightly also, though diesel prices strengthened. Crude prices appear to be recouping the loss.
Oil prices are rising based on market expectations of tighter supply. On Friday, the Baker Hughes rig count showed active rigs in the U.S. falling from 1048 to 1044. The active rig count has grown enormously so far this year. It soared from 924 active rigs during the week ended January 5th to 1062 rigs during the week ended June 8th, an increase of 138 rigs. However, the rig count since then hit a plateau and began to trend down. Since the peak in June, 18 rigs have left the field. While the relationship between the rig count and production is not one-for-one, the rig count is used as a barometer for bullish or bearish sentiment among U.S. oil producing companies.
Also pointing to tighter supply: First, preliminary reports indicate that Saudi Arabian production declined unexpectedly in July, despite the Saudi pledge to raise output. Second, the markets will decide upon the impact of the reinstatement of U.S. sanctions against Iran tomorrow.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on the NYMEX at $68.65/b today. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices fell by $0.25/b. Prices are now heading back up. The latest price is $69.14/b.
Diesel opened on the NYMEX at $2.1281/gallon today. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices rose by 0.69 cents/gallon. Prices currently are continuing their gradual upward path. The latest price is $2.1358/gallon.
Gasoline opened on the NYMEX at $2.0664 today. Over the last 24-hour period from 9AM EST to 9AM EST, gasoline prices declined by 0.57 cents/gallon. Prices are currently cycling up and down, appearing flat overall. The latest price is $2.059/gallon.