On Tuesday, WTI crude followed US equities lower, closing 7.6% down for the day. The market was inundated with bearish news, including slowing crude demand coming from China and rising coronavirus cases around the world. The market is recouping some of yesterday’s losses in early trading this morning.
President Trump gave direction to the Environmental Protection Agency (EPA) to deny requests for retroactive waivers from US biofuel laws to dozens of oil refiners in a move that some say will garner support from Farm Belt voters ahead of the November election. The waivers have been a source of contention between corn and oil lobbies. Under current US law, oil refineries must blend biofuels into their products or buy blending credits. Those opposing waivers suggest that they harm demand for corn-based ethanol, while supporters argue that the program causes unnecessary financial hardship for oil refineries.
Crude prices are up this morning. WTI Crude is trading at $37.40, a gain of 64 cents.
Fuel is up in early trading this morning. Diesel is trading at $1.0835, a gain of 0.7 cents. Gasoline is trading at $1.1095, an increase of 0.7 cents.
