Yesterday, crude prices finished down but slightly stronger than the morning on news that Russia would not increase production into next month. Crude oil futures have jumped this morning by over 20% after President Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war. Trump said he had talked recently with the leaders of both Russia and Saudi Arabia and believed the two countries would make a deal to end their price war within a “few days” – lowering production and bringing prices back up. (Reuters)
Speaking at a government meeting on Wednesday, Putin said that current prices were a serious problem for the Russian economy; he also invoked the argument that low prices were stifling investment, which could eventually lead to a “damaging” spike in oil prices and stated that Russia “won’t increase production.” (Bloomberg)
Yesterday, weekly data on US inventories showed crude’s biggest weekly increase since 2016. The EIA reported a larger-than-expected build for crude of 13.8 MMbbls, versus an expected build of 4.0 MMbbls. At Cushing, the EIA reported a 3.5 MMbbls build. The EIA reported distillates had a surprise draw and gasoline had a larger-than-expected build.
WTI Crude is trading higher this morning at $24.93, a gain of $4.62.
Fuel is up in early trading this morning. Diesel is trading at $1.0202, a gain of 8.8 cents. Gasoline is trading at $0.6481, a gain of 10.2 cents.