Markets continue to lose steam this week thanks to uncertainty in the financial market after Trump’s announcement of tariffs. Markets continue to analyze the expected impact of Trump’s heavy tariffs on steel and aluminum. Read about how Trump’s tariffs could affect fleet’s here.
The financial market has played a key role in the oil complex this week. On Thursday, traders got nervous about key trends and began exiting the market. This caused prices to fall. The fear of higher interest rates that would strengthen the dollar and make bonds more attractive to traders also weakened oil prices. As pointed out yesterday, although the oil market fundamentals still look neutral/bullish, the technical financial factors are not in favor of higher prices in the short-term.
Although the week ended lower, the market began the week strong thanks to 3 factors: equities, demand forecasts, and a dinner date. Read how these factors propelled the oil complex earlier this week here. U.S. shale producers and OPEC representatives gathered this week at CERAWeek. OPEC’s Secretary General Mohammed Barkindo reportedly called on shale producers to keep prices at their current levels.
Crude prices began the week at $61.55, having lost $2.50 during the previous week. After rising on Monday and Tuesday, markets showed steady losses throughout the rest of week, with the biggest losses occurring on Thursday driven by uncertainty in the financial market and a slightly bearish EIA report. This morning, prices opened at $60.27, a loss of $1.28 for the week.
Diesel prices started the week with a small gain of 1.6 cents and trading up and down throughout the week. Prices made upward movement on Tuesday before heading back down. Prices began the week at $1.8964, and rose to $1.1911 before falling to a low of $1.8562 yesterday. Prices made small gains this morning opening at $1.8662, but not enough to make up for their mid-week losses, closing over 3 cents lower than their opening price for the week.
Gasoline prices also showed losses this week. Overall the trend has also been lower, with markets falling every day but Monday. Gasoline prices began the week at $1.9144, and opened this morning at $1.8720. Prices received a small boost on Wednesday after the EIA reported draws in inventories, but gasoline could not hold on to those gains and is set to end the week lower.