The Fed is ready to cut rates as needed
Crude prices are falling on inventory reports from the API this morning. Crude is trading at $52.64, down 84 cents from yesterday’s close.
Fuels are also down this morning due to larger than expected builds reported by the API. Diesel is trading at $1.7942, down 2.7 cents. Gasoline is also lower, trading at $1.7020, a loss of 2.2 cents.
U.S. equities markets rose abruptly following news that Federal Reserve Chairman Jerome Powell said that the Fed is prepared to cut interest rates if the U.S.-China trade war starts to result in an economic slowdown. The Dow was up 512 points and the S&P rose 58 points. Equities pulled oil up from session lows to post a modest gain yesterday, but the market is giving back those gains and more in early trading this morning.
Crude is heading lower this morning on news of a surprise build as reported by the API. A small draw on crude was expected, but the API reported a build of 3.6 mmbbls. Reports by the API on distillates and gasoline showed larger than expected builds which are driving fuel prices lower this morning too.
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