Markets Unmoved, Awaiting Storm Impact
With Hurricane Florence bearing down on the East Coast, fuel prices declined gently yesterday, given the storm’s threat to fuel demand in the region. Of course, the local impact will be higher prices until supply and freight conditions normalize. More information on Florence’s fueling impact will be send in today’s Storm Alert.
Crude oil ended yesterday down 21 cents – not a huge drop, but directionally showing how markets feel about the approaching storm. This morning, prices are slightly higher, though they lack enthusiasm. Crude oil is trading at $67.67, up 13 cents from yesterday’s close.
Fuel prices are getting a bit more of a boost this morning, perhaps a pre-storm bump as consumers and companies top off their tanks ahead of the storm’s impact. Diesel prices this morning are $$2.2257, a gain of 0.8 cents. Gasoline prices are $1.9804, picking up 2.1 cents.
Markets are looking ahead to the plethora of market reports coming out from industry publication groups. Today, the EIA will release their monthly Short Term Energy Outlook (STEO), and OPEC and the IEA will be reporting on Wednesday and Thursday, respectively. Given the on-going concerns over lost Iranian production, markets will be looking closely at global supply/demand data to see what the net effects of those sanctions will be. Other countries have pledged to fill in the gap, but markets have yet to verify whether they will be enough.
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