Today’s Market Trend
Crude prices remain lower today as refineries in the Gulf remain offline, reducing crude demand. Prices are 46.03 this morning, above their close yesterday of $45.96. Prices have been struggling; crude barrels were trading at a low of $45.58 this morning, the lowest its traded since July. 4.6 MMbpd of refinery production remain offline, keeping crude in storage and prices low.
Refined products continue their high trek. Gasoline prices have surpassed $2.00 this morning, and are currently $2.007. Keep in mind, however, that NYMEX prices are for prompt month delivery – that is, the price quoted today is for September gasoline. Tomorrow, on Sept 1, that roles over to the October contract, which has been trading around $1.68, closer to where prices were before Harvey hit. With that in mind, expect to see a large drop in gasoline prices in tomorrow’s FUELSNews.
Diesel continues its steady rise, closing yesterday at $1.6738 and reaching $1.6915 this morning. Diesel prices have been far less volatile than gasoline prices throughout the week, since extreme weather conditions typically shut down businesses, taking diesel trucks off the road, while increasing gasoline as individuals drive away from the damage. NYMEX October prices have been trading at $1.67, not far below current NYMEX prompt month prices.
The EIA largely confirmed the API inventory data, but analysts widely agree that inventory reports will be extremely difficult to interpret over the coming weeks. With market attention focused on the Gulf Coast, changes in inventory levels had little effect on the market, despite appearing to be bullish overall for crude.