Oil is up slightly this morning on bullish trade news. WTI Crude is trading at $54.00, a gain of 7 cents from yesterday’s close.
Fuel is flat in morning trading. Diesel is trading at $1.9487, up fractionally. Gasoline is trading at $1.6276, up half a penny.
Positive sentiment from the US and China helped to alleviate concerns over economic growth, at least for a brief period. China’s refinery activity reportedly rose, signaling higher crude demand for international suppliers. On the trade front, Treasury Secretary Steven Mnuchin hinted that the first phase of a trade deal could be signed next month – a positive indicator of progress. Whether Phase 1 is a symbolic gesture or a substantive change is yet to be seen.
While on the international topic, Brexit seems to be getting closer to a resolution. EU leaders have now unanimously endorsed a deal with Brexit, leaving it to British Prime Minister Boris Johnson to push the deal through Parliament over the next few days.
The EIA’s report yesterday generally tracked the API’s data, including a hefty crude oil build along with diesel draws. Surprisingly, the market took a turn higher yesterday following the EIA’s numbers, on the heels of continued diesel inventory draws.
