Yesterday, crude prices closed up slightly on hopes that the US will soon reach a deal on a $2 trillion coronavirus aid package. Crude prices are up this morning supported by steps by the US Federal Reserve to bolster the economy.
The Federal Reserve is doing everything in its power to limit the slide in equities, keep Treasury yields low and provide ongoing liquidity. Yesterday they announced plans to buy $250 billion in mortgage backed securities and $375 billion in Treasuries this week, and to relaunch their term asset backed securities loan facility to support consumer and business debt and introduce two facilities to support corporate debt markets. They also indicated that there is no limit to their Quantitative Easing program which means they will do whatever it takes and purchase whatever is needed to stabilize the market. Unfortunately, their efforts fell flat with equities giving up early gains to end the day lower once again.
In early trading today, crude prices are continuing their upward trend. Crude is currently trading at $24.39, a gain of $1.03.
Fuel prices are also up today. Diesel is trading at $1.0740, a gain of 5.8 cents. Gasoline is trading at $0.4630, a gain of 5.1 cents.