Rising crude stocks are putting downward pressure on prices again this morning. WTI Crude is trading at $53.77, a loss of 71 cents.
Fuel is down this morning. Diesel is trading at $1.9261, a loss of 1.8 cents. Gasoline is trading at $1.5989, a loss of a penny.
On Tuesday, crude prices rose on positive remarks coming from U.S. and Chinese trade delegations regarding a phase 1 portion of a trade deal. Remarks from President Trump that trade negotiations with China were going well, were followed by analogous statements from Chinese Vice Foreign Minister Le Yucheng contributing to optimism that a US-China trade deal could be struck in November. In addition, continued talk from OPEC and its allies regarding even deeper production cuts helped to lift the markets yesterday. However, the crude market is giving back some of its gains from yesterday in early trading on Wednesday based upon a larger-than-expected crude build reported by the API.
The API’s data last night:
The API reported a larger-than-expected build for crude of 4.5 MMbbls versus an expected build of 2.2 MMbbls. At Cushing, stocks rose for the fifth week in a row with a build of 2.0 MMbbls. Markets seem to be moving lower this morning based upon inventory news. The EIA report coming out later this morning is eagerly anticipated by market participants to help determine how the markets will move.