Happy Presidents Day! NYMEX markets are closed today in observation of the holiday, so fuel prices comes from Globex 24-hr pricing data.
Oil markets are continuing their rebound, following a price correction that lowered prices by $7/bbl. Since falling to a low of $58.20 last week, oil prices opened this morning at $61.63, an overall gain of $3.40 (5.8%) over the past four trading sessions. Today, prices are continuing their ascent higher, with WTI crude gaining 45 cents (0.7%) since Friday’s close to trade at $62.13.
Fuel prices are also at their highest point since the correction began two weeks ago. Diesel and gasoline prices both ended Friday in the black, up 1.6 cents and 0.8 cents, respectively. Today, both prices are still rising. Diesel prices are currently up 1.3 cents (0.7%), trading at $1.9229. Gasoline prices are trading at $1.7577, up 0.7 cents (0.4%).
CFTC data reported on Friday showed that managed money net length has fallen nearly 8% since peaking in early January. Managed money net length shows how bullish institutional investors are on prices. The decline in prices has been accompanied by declining investor bullishness – as investors pulled out of the market, prices fell. The 8% decline shows that markets have been bearish over the last few weeks. On the other hand, markets are now less overextended than before, which could provide a bit more room for prices to rise.
This weekend, Mexico became the 30th member of the International Energy Agency, a coalition of major energy producers made up of OECD nations. Mexico is the first Latin American country to join the agency, which is made up of European countries, Australia, the United States, Canada, Turkey and Japan. Member nations are required to maintain 90 days of oil supply in stock to address global oil disruptions. As a member, Mexico will have a strong voice in effecting change in global energy legislation.