As of Friday’s open, the Crude Market was up, but in early trading Friday morning, the market is giving back its gains and more. The week started off with bullish news as US officials gave word that all waivers on purchases of Iranian crude would be discontinued, which will cut Iran’s meager 1 MMbpd stream of exports to virtually zero. Trump tweeted that Saudi Arabia and other OPEC countries will offset the difference, and Saudi Arabia has indicated they will work with OPEC countries to ensure balanced markets (though their statement fell short of guaranteeing more supply).
The bulls were in charge until mid-week when bearish inventory reports from the EIA showed a good size crude build. On the bearish news, the market pulled back and the bears seems to be closing out the week with the crude market seeing losses.
Prices in Review
Crude opened the week at $64.00. During the week we saw a 2019 high close of $66.30. A crude build reported mid-week by the EIA started a pullback which continued to the end of the week. Crude opened Friday at $65.13 which shows a gain of $1.13 (1.8%), but the market seems to be giving back those gains in early trading on Friday.
Diesel opened the week at $2.0686. It followed crude closely through the week. Diesel opened Friday at $2.0947, a gain of 2.6 cents (1.3%) but diesel also seems to be giving back those gains and more in early trading on Friday.
Gasoline opened the week at $2.0722. It followed crude sharply up on the Iran sanction discontinuing waiver news, then gave back some gains by mid-week. On EIA news of a build, it saw another increase. Gasoline opened Friday at $2.1298 a gain of 5.8 cents (2.8%), but it too appears to be giving back some of its gains in early trading on Friday morning.