Oil Follows Equities Higher
Crude is up in early trading this morning. Crude is currently trading at $60.48, a gain of 27 cents.
Fuel prices are up. Diesel is trading at $2.0179, a gain of 1.3 cents. Gasoline is trading at $1.6685, a gain of 0.6 cents.
Yesterday, crude traded at three-month highs as markets continue to remain positive on the Phase 1 trade deal between the US and China. A strong rally in most equity markets around the world helped give oil prices a comfortable tail wind. Providing further support is the positive sentiment produced by the OPEC+ supply cuts. Finally, a declining US Dollar also helped to lift crude prices.
China’s refiners and traders are importing IMO 2020-compliant fuel as costly tariffs discourage domestic production. Taxes on locally-produced shipping fuel were expected to be reduced or rolled back ahead of the International Maritime Organization rules that take effect January 1; however, delays in their implementation have prompted Chinese buyers to haul fuel from Singapore into bonded storage in zones such as Zhoushan, where cargoes aren’t subject to tariffs.
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