Positive trade news out of China late yesterday is driving markets higher this morning. WTI Crude is trading at $57.30, a gain of 95 cents.
Fuel is up in early trading this morning. Diesel is trading at $1.9439, a gain of 1.6 cents. Gasoline is trading at $1.6394, a gain of 1.3 cents.
On Wednesday, early news of delays in signing a trade deal kept markets in check. In addition, news from OPEC+’s largest producers stating they are not pushing for deeper cuts next month helped to keep markets lower. Russian Energy Minister Novak stated that the oil market is rather balanced and an oil price above $60/bbl indicates that the situation is stable. Finally, bearish inventory news from the EIA drove markets lower.
The EIA reported a larger-than-expected crude build of 7.9 MMbbls versus an expected build of 1.5 MMbbls. At Cushing, they reported a seventh straight build of 1.7 MMbbls. Diesel drew 0.6 MMbbls versus an expected 1.0 MMbbls expected draw. Gasoline had a 2.8 MMbbls draw versus an expected draw of 1.8 MMbbls.
In trade news, China and the US have agreed to cancel tariffs in different phases, the Chinese commerce ministry said on Thursday without providing a formal timeline. Beijing’s comments increased market optimism, but worries about a trade deal still loom as the meeting between Trump and Xi Jinping to sign the deal is expected to be delayed until December.