Prices are trading flat to slightly lower this morning. Crude traded sharply lower yesterday, losing $1.25 to close the day at its lowest price in over a week. This morning, crude remains in negative territory, losing 13 cents to trade at $67.57. The heavy sell-off in the market yesterday followed a press conference with President Trump and French President Macron which eased some concern over the U.S. sanctions on Iran. President Trump stated that the U.S. may propose “a new deal with solid foundations.”
Refined fuels are also headed slightly lower this morning. Diesel prices are trading flat, down just 3 points to trade at $2.1273. Gasoline has declined 47 points this morning to trade at $2.0902. Product prices both declined on Tuesday, despite inventory draws reported by the API.
The API report showed mixed results yesterday. Crude inventories saw a build over 1.1 MMbbls, which was a surprise to the market which expected a 2.0 MMbbls draw. Diesel and gasoline drew by 1.9 MMbbls and 0.6 MMbbls respectively. The market is anticipating the EIA report that will be released later this morning. If the EIA confirms the build in crude, prices will likely remain bearish.