A mixed bag of outcomes from yesterday’s weekly EIA inventory report yielded a net loss across energy markets yesterday with WTI oil falling nearly a dollar to $67.77 and Dated Brent losing 77 cents to finish at $76.50 a barrel. The DOE’s data pointed to a 4.3 million barrel draw for oil stocks while refined products like gasoline built 1.8 million barrels in reserves with diesel rising 1 million. Inevitably diesel bore the brunt of the selloff, declining nearly 3 cents a gallon while gasoline shed a little more than a cent.
This morning sees a number of reports and headlines that could determine the outcome of what has been, so far, a losing week on the markets. Details about jobs numbers, specifics on increased U.S. tariffs and duties on Chinese products, delayed fall refinery turnarounds which are set to be 15% higher than traditionally seen through October and the continued currency devaluation of a long list of emerging markets which are propping up the Greenback. Consideration will soon also be given to developing weather-related disturbances in the tropical Atlantic with Tropical Storm Florence expected to strengthen on possible course to the U.S. east coast and two disturbances behind it.
Drivers are continuing to see median pump prices hold just below $2.86 a gallon according to the GasBuddy Live Ticking Average, up two cents from the previous week, slightly below last month’s average but still 18 cents a gallon higher than on this day in 2017. Diesel maintains its remarkable premium over gasoline and its price this time last year, holding steady at $3.17 a gallon or 49 cents over last year’s 2.68 a gallon.
For the day ahead, a likely repeat of the past several trading sessions is at hand with early indications evaporating by the mid-morning to record a slight net loss on the day. Trade tensions and awareness that U.S. sanctions on Iran are taking a toll on major importers may lead to closer attention being paid to next week’s monthly International Energy Agency report, as well as OPECs on the full effect of the looming embargo, but it is ongoing trade issues that are set to dog all markets to yield a loss on the week.