The Oil Market Follows Equities Lower
Oil markets fell across the board Thursday for the third consecutive day,Prices are closely tracking the equities market as it moves lower. Crude prices lost 53 cents yesterday to close the day below $61/bbl. Today, crude prices continue their downward trend losing another 24 cents (.39%) to trade at $60.75.
Refined products posted moderate losses yesterday, outpacing the decline in crude prices on a percentage bases. Diesel gave up over 2 cents to close the day at $1.8855. Gasoline prices lost 3 cents closing at $1.8964. Both products are still moving lower this morning. Diesel prices lost another 2.71 cents (1.44%) and are currently trading at $1.8584. Gasoline prices are $1.8699, 2.65 cents (1.4%) below yesterday’s closing price.
President Trump announced on Thursday that he plans to impose heavy tariffs on both steel and aluminum imports. The equities market fell as fears of trade war with China initiated a selloff on Wall Street. The President proposed a tariff of 25% on steel imports and 10% on aluminum. The oil complex followed the equities market down yesterday, but received a boost later in the afternoon after the dollar weakened when equities attempted to rebound.