Yesterday crude and products rallied sharply higher following reports of critical breakthroughs in developing treatments for the deadly coronavirus. Reports indicate that a team at a Chinese university have found an effective drug to treat people with the coronavirus. Wire services also reported that a team in the United Kingdom has developed an alternative vaccine, further calming fears the coronavirus would expand into a global pandemic.
Crude prices are relatively unchanged this morning on mixed optimism regarding OPEC+ response to the coronavirus’ oil demand destruction. Saudi Arabia and Russia remain split over the threat that the outbreak poses to global oil demand. The Kingdom is pushing for deeper cuts while Russia is more restrained. Yesterday, EIA data showed mixed results with US crude stock rising by greater than expected while product inventories drew.
The EIA reported a larger-than-expected build for crude of 3.4 MMbbls, versus an expected build of 2.8 MMbbls. At Cushing, the EIA reported a 1.1 MMbbls build. The EIA reported distillates had a draw and gasoline saw a surprise draw.
WTI Crude is trading relatively flat this morning at $50.57, a loss of 18 cents.
Fuel is flat in early trading this morning. Diesel is trading at $1.6438, a loss of 0.2 cents. Gasoline is trading at $1.4819, a loss of 0.4 cents.
