Today’s Market Trend

By Published On: May 22, 2017Categories: Crude, Daily Market News & Insights, Diesel, Gasoline

WTI crude prices reached $51.00/b this morning, after continuing their upward trend on Friday. Friday’s market closed at $50.33/b, a gain of $2.48 over the course of the week. WTI opened at $50.60/b today, a major jump of $1.32, or 2.68%, above Friday’s opening price. Current prices are $51.00/b, an increase of $0.67 above Friday’s closing price.

Diesel opened at $1.5888/gallon this morning. This was a major increase of 4.55 cents (2.95%) above Friday’s opening price. Current prices are $1.605/gallon, an increase of 2.23 cents above Friday’s closing price.

Gasoline opened at $1.6549/gallon today, which, like diesel, was up significantly from Friday’s opening price—a jump of 4.76 cents, or 2.96%. Prices are $1.6666/gallon currently, an increase of 1.43 cents above Friday’s close.

Last week, OPEC and non-OPEC oil producers started meeting in earnest to hammer out details of an extension to the production cuts. Saudi Oil Minister Khalid Al-Falih announced that all of the original participants in the cuts are on board for an extension. The group is proposing a longer-term cut that will extend into 2018 and possibly go deeper than the original cuts, and may include one or two new participants as well. The OPEC-NOPEC group is working toward cementing their agreement in the next few days, so that the formal meeting on May 25th will be a rubber stamp.

The market is showing more faith that the OPEC-NOPEC group will be able to drain some of the excess global crude inventory. The low prices in 2016, plus a slight reduction in net exports, resulted in a significant drop in oil export revenues. The U.S. Energy Information Administration (EIA) calculates that OPEC net oil export revenues declined to $433 billion in 2016, the lowest level since 2004. According to the EIA analysis, 2016 revenues were 15% below the $509 billion earned in 2015. With 2017 prices slightly higher, the EIA forecasts that OPEC’s net oil export revenues will rise to approximately $539 billion dollars (nominal) in 2017. The EIA’s analysis is presented in our second article today.

This article is part of Crude

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The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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