Oil is trading down slightly this morning after two days of sharp losses. Concern around the pace of economic and demand recovery due to the coronavirus is the major driver moving prices this week.
We are seeing a spike in coronavirus infections as the winter months approach and the forecast is for an accelerating rate of infection if measures are not taken soon. On Thursday, Johns Hopkins data showed that the United States reported 88,521 new coronavirus cases, a record for one day. We can expect the continuation of social distancing protocols and a likely second wave of lockdowns affecting public meeting places such as restaurants, bars, and churches. Only recently in many states have the restrictions on meeting places begun to be relaxed. These lockdowns will continue to put pressure on demand for diesel and gasoline during an already lower demand season.
Crude prices are down this morning. WTI Crude is trading at $35.92, a loss of 25 cents.
Fuel is down in early trading this morning. Diesel is trading at $1.0880, a fractional loss. Gasoline is trading at $1.0457, a decrease of 0.6 cents.
