Fuels Market Watch 24

Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.

FUEL MARKETS TODAY – Market Overview

Crude oil prices sustained yesterday’s gains and remain in the neighborhood of $70/b this morning. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $69.71/b, up by $0.91 from yesterday’s opening. Gasoline and diesel prices also opened strongly today, though they have handed back some of yesterday’s gains.

Crude oil prices have retained strength despite an expected addition to crude oil inventories. The American Petroleum Institute (API) reported a crude stock build of 1.25 million barrels for the week ended September 14th. The API expects a significant draw of 1.49 mmbbls of gasoline, countered by a diesel stock build of 1.54 mmbbls. The U.S. Energy Information Administration (EIA) will publish official data later today. The data will be complicated by the impacts of Tropical Storm Florence.

Global trade is at the top of today’s news, with U.S-Canada talks on NAFTA scheduled in Washington DC, plus an informal summit on Brexit in Salzburg, Austria. President Trump has warned Canada that he will impose tariffs on Canadian goods if no deal is reached. British Prime Minister Theresa May continues to seek better terms for Brexit from European Union leaders. On the U.S.-China trade war front, China stated that it would not devalue its currency as part of the response to the latest U.S. tariffs. The U.S. Dollar fell against a basket of other currencies when it was announced that the next round of tariffs would be only 10% initially, not the full 25%.

GASOLINE
Gasoline opened on the NYMEX at $2.0050 today, a significant recovery of 3.14 cents from yesterday’s opening. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices receded somewhat, falling by 0.56 cents/gallon (0.28%.) Currently, gasoline prices are struggling to maintain a position above $2/gallon. The latest price is $2.0064/gallon.
DIESEL
Diesel opened on the NYMEX at $2.230/gallon today, up significantly by 2.99 cents from yesterday’s opening. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices surrendered some of these gains, falling by 1.82 cents/gallon (0.81%.) Currently, diesel prices are recovering from a short dip, and are slightly down from market opening prices. The latest price is $2.2257/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on the NYMEX at $69.71/b today, up significantly by $0.91 from yesterday’s opening price. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices have been flat overall, declining by one penny (0.01%.) Currently, crude prices remain strong, with prices hovering around the $70/b mark. The latest price is $70.18/b.