The oil market is trending higher this morning following a constructive API report. Crude peaked over $69 yesterday before closing the day at $68.52. This morning, crude is trading mostly flat but remains in positive territory, gaining a mere 9 cents to trade at $68.61.
Fuel prices are also moving higher this morning. Diesel is up 1.3 cents and is currently trading at $2.1457. Gasoline has gained 1.5 cents to trade at $2.1110 this morning. Fuel prices received a boost yesterday from product draws reported by the API.
There is a lack of market-moving news this morning as the market anticipates the EIA report coming out shortly. Tension surrounding the Chinese trade war is keeping the markets attention while military threats between Iran and the US continue to fly. However, yesterday, Trump indicated his willingness to make a “real deal” with Iran but has yet to provide any details of what the deal could entail.
The API reported across the board draws yesterday. Crude drew by 3.2 MMbbls, surpassing the market’s expectation of a 2.3 MMbbls lending some support to prices. Gasoline drew by 4.9 MMbbls while diesel drew by 1.3MMbbls, bringing products to a net 6.2 MMbbls draw.