Analysis by Dr. Nancy Yamaguchi
The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended July 17, 2017. Crude prices have cycled up and down over the past four weeks, leading to ups and downs in nationwide retail gasoline and diesel prices. For the current week, prices for diesel increased by 1.0 cents per gallon, while gasoline prices dropped by 1.9 cents per gallon.
DTN released its survey of industry experts, predicting another drawdown of U.S. crude stocks. The survey expects a crude draw of 3.0 million barrels (MMbbls), offset by gasoline stock additions of 1.0 MMbbls and distillate stock additions of 1.5 MMbbls.
Ecuador has stated that it is not complying with the OPEC production cut agreement, and that it plans to start raising output. Ecuador pledged a cut of 26 thousand barrels per day (kbpd), and noted that it has only cut around 16 kbpd because of financial difficulties. The country’s Oil Minister, Carlos Perez, stated that OPEC allowed some flexibility regarding Ecuador’s needs, and that the volume was small in the context of the greater OPEC-non-OPEC agreement. Ecuador’s production target was 522 kbpd, and OPEC reported Ecuador’s production at 527 kbpd in June.
West Texas Intermediate (WTI) crude oil prices have climbed to the $46.50 – $46.75 per barrel (/b) price neighborhood this morning. Yesterday, prices ebbed to a close of $46.02/b. WTI opened at $45.99/b this session, down by 69 cents, or 1.48%, from yesterday’s opening price. This morning, prices have recouped the loss, surging by 73 cents to an average of $46.72/b at present.
Diesel opened at $1.4986/gallon this morning. This was a drop of 2.0 cents (1.32%) above yesterday’s opening price. Diesel prices are $1.519/gallon currently, up by 2.04 cents from today’s opening price.
Gasoline opened at $1.5588/gallon today, down by 0.37 cents, or 0.24%, from yesterday’s opening. Gasoline prices are $1.5829/gallon currently, a recovery of 2.41 cents from today’s opening.
