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Energy View: Friday April 5

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Energy markets continued to turn in a listless performance, falling slightly for a second trading day in a row Thursday as WTI shed 36 cents to end the session at $62.10 a barrel while Dated Brent managed a symbolic 9 cent gain to $69.31 on the day. Materials didn’t fare much better with gasoline down over a cent with diesel up over half a cent, bucking traditional seasonal declines.

The morning appears to be a continuation of yesterday’s results with little news to inspire or motivate traders to express a clear direction for the day ahead and while talk of the U.S. and China closing in on a deal to end trade tariffs appear to be gathering steam, the markets have already considered the likelihood of a settlement and are looking more broadly at both supply and demand fundamentals as well as assessments by the equities markets.

The unmistakable gasp at the nation’s gas pumps is a common reaction to prices, which now stand at $2.738 a gallon according to GasBuddy’s Live Ticking Average. Not only is the price attracting attention, but considering it has risen 3.7 cents since last week and an impossible 29.7 cents since last month, little wonder today’s average is a full 7.2 cents higher than on this same day last year when many felt those values were astronomical. On the diesel side of the fuel equation, the cost to operate heavier transportation fuel sits at $3.039 a gallon, 6.5 cents above costs on April 5, 2018.

While California leads the nation in highest gas prices at $3.679 a gallon, many may take solace in knowing that Vancouver British Columbia saw pump prices yesterday reach $1.64 a liter or $4.64 USD a gallon. The near record was in response to refinery maintenance issues in the Washington state, which supply Canada’s 3rd largest city with a third of its fuel needs and the City’s pre-eminence among all North America as the highest fuel taxed jurisdiction at $1.48 a gallon USD which is nearly triple the US average of 52.18 a gallon.

The session today may well focus on this morning’s jobs report that anticipates a 175,000 increase in payrolls. Should the number be exceeded, markets could reverse course from their soft decline to post a small gain on the day. Whatever the outcome the week will finish as a whole in the positive column, given the rally earlier in the week.

For budget-minded drivers, GasBuddy is the travel and navigation app that is used by more North American drivers to save money on gas than any other. Unlike fuel retailer apps, as well as newer apps focused on fuel savings, GasBuddy covers 150,000+ gas stations in North America, giving drivers 27 ways to save on fuel. That’s why GasBuddy has been downloaded nearly 90 million times – more than any other travel and navigation app focused on gas savings.