Fuels Market Watch 24
Exclusive daily fuels market analysis by Dr. Nancy Yamaguchi.
FUEL MARKETS TODAY – Market Overview
Crude oil prices eased modestly this morning. WTI (West Texas Intermediate) crude prices in today’s trading session opened at $72.09/b, down by $0.16 from yesterday’s opening. Monday and Tuesday brought a price surge of around $2/b, and some downward correction is underway. Gasoline opened slightly lower today, while diesel prices opened with continued gains, but also began to follow crude on a downward trend.
Prices cooled yesterday when the American Petroleum Institute (API) released its inventory report, showing an increase in crude oil supplies of 2.9 million barrels during the week ended September 21st. This contradicted an earlier survey of industry experts, which forecast an inventory drawdown of 2.2 mmbbls. The API also expects a stock build of 0.949 mmbbls, countered by a diesel stock draw of 0.944 mmbbls. The U.S. Energy Information Administration (EIA) will release official statistics later today.
The U.S. Federal Open Market Committee (FOMC) will issue its policy statement this afternoon. The Fed is widely expected to announce an increase in interest rates, with some polls of economic experts placing the likelihood of a rate hike at 95%. The Fed may also strengthen statements about the future of monetary policy. This year may bring a formal end to the era of “accommodative” policies designed to support the U.S. economy in the aftermath of the Great Recession. The U.S. economy has been in a prolonged period of expansion, with extremely low rates of unemployment (3.9% in August,) high GDP growth rates, growth in equities markets, and high consumer confidence.
Gasoline opened on the NYMEX at $2.0595 today, down slightly by 0.05 cents from yesterday’s opening. Over the last 24-hour trading period from 9AM EST to 9AM EST, gasoline prices dropped by 1.06 cents/gallon (0.51%.) Currently, prices are stable, and they appear to be following crude as it eases and stabilizes. Gasoline prices have retreated below $2.06/gallon. The latest price is $2.0534/gallon.
Diesel opened on the NYMEX at $2.3012/gallon today, an increase of 0.92 cents from yesterday’s opening. Over the last 24-hour period from 9AM EST to 9AM EST, diesel prices fell by 0.49 cents/gallon (0.21%.) Currently, prices are ebbing, falling below the $2.30/gallon level. The latest price is $2.2962/gallon.
WEST TEXAS INTERMEDIATE
WTI (West Texas Intermediate) crude prices opened on the NYMEX at $72.09/b today, down by $0.16 from yesterday’s opening price. Over the last 24-hour period from 9AM EST to 9AM EST, crude prices fell by $0.66 (0.91%.) Crude prices have retreated from the $72/b level, and currently are in the range of $71.75/b-$72.00/b. The latest price is $71.94/b.