Market Continues 7-Day Up-Streak

Oil prices are sustaining gains this morning, knocking on the $50/bbl ceiling that has capped oil prices for the past few weeks. Crude oil is trading at $49.05 this morning, up 53 cents as the 7-day streak of gains appears to be holding.

Fuel prices are also up this morning, with diesel above $1.80 for the first time since before Christmas. Diesel prices are currently trading at $1.7992, up 2.1 cents from yesterday’s close. Gasoline prices are up $1.3434, rising by a much smaller 0.3 cents.

Sentiment is slowly improving on global growth prospects as US-China trade talks continue. Leaders on both sides have expressed optimism that a deal will be reached – though don’t be surprised if a deal includes some form of tariffs. Trump has been quite vocal that whether or not we sign a deal with China, we’re receiving billions of dollars in tariffs, which he counts as a win. Still, the administration is catching flack following Apple’s announcement that tariffs were having an adverse impact on their profits. Regardless of the final deal, any signal of certainty will help normalize trading relations, allowing Chinese companies to resume purchases of American goods when profitable, and vice versa.

Adding to bullish headwinds is a falling dollar, declining after the Fed’s hint of slower interest rate growth in 2019. Markets are now even factoring in a possible Fed rate cut this year, which contrasts sharply with the Fed’s stated goal of 2 rate hikes. The Fed’s action come amid uncertainty about China’s economy spilling over globally. Although jobs and wage data have been supportive of rate hikes, Fed Chair Powell noted concerns about inflation.

In more direct fundamental news, Saudi Arabia is reportedly moving towards even steeper production cuts than originally planned. A report citing unnamed sources in the oil regime shared that Saudi Arabia will cut 800 kbpd below its November production – an additional 300 kbpd relative to their last cut. The kingdom seems committed to balancing markets and returning prices to their former highs of $70/bbl.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Make a Call

We are happy to discuss your business challenges over the phone and answer any questions.

800.695.6626

Send Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote