Easing Trade Tensions

Oil prices are relatively unchanged this morning.  WTI Crude is trading at $60.91, a loss of 2 cents.

Fuel is up in early trading this morning.  Diesel is trading at $2.0225, a gain of 0.2 cents.  Gasoline is trading at $1.6930, a gain of 0.9 cents.

On Wednesday, crude prices closed flat after trading lower earlier in the session.  Markets were lifted by more easing of US-China trade tensions.  China’s finance ministry published a new list of six chemical and oil products from the US that will be exempt from tariffs starting on December 26^th.  In addition, the EIA inventory report was bullish when compared to the API report.

The EIA reported a draw for crude of 1.1 MMbbls, verses an expected draw of 1.3 MMbbls.  The EIA numbers were bullish in comparison to the API estimate of a large build.  At Cushing, the EIA reported a 3.4 MMbbl draw.  The EIA reported distillates had a larger-than-expected build and gasoline also saw a larger-than-expected build.  However, products builds were smaller than API estimates giving the EIA data a bullish tint.  Markets were mixed as the inventory data was absorbed.

Yesterday, in a near party-line vote in the House of Representatives, President Trump became the third US President in history to be impeached.  What comes next is a trial in the Senate that could, but probably won’t cost him the White House.  So far markets have not reacted and appear to expect proceedings to die in the Senate.