Prices saw a strong dip in prices overnight, sinking as low as $60/bbl before rebounding again, though crude still has yet to rise to Friday’s closing level. Today crude oil is trading at $61.85, down 9 cents from Friday’s close.
Fuel prices saw a similar overnight drop, though gasoline’s rally was far more muted than that of diesel. Diesel prices this afternoon are $2.0629, down 0.7 cents. Gasoline prices are $1.9971 currently, a sizable 2.9 cents lower.
After months of negotiations between the US and China on trade, President Trump seems to be fed up with slow progress. President Trump announced yesterday via Twitter that tariffs would be raised from 10% to 25% on Friday, while goods currently exempt from tariffs will see 25% tariffs “soon.” Markets plummeted from the news, which was unexpected given numerous statements from both nations that progress was indeed being made. Goldman Sachs estimated the odds of tariffs actually rising to be just 40%, though, expecting enough progress in trade talks to avert any true penalties.
In Iran, sanctions are having a strong impact on the country’s oil output. Trending around 1 MMbpd with waivers in place, Iran expects production to fall to just 500 kbpd once waivers are lifted. Still, the country is working hard to maintain sales in “grey” markets, hoping to skirt financial sanctions.