The crude market experienced one of the worst downturns since 2008 this week. The major news moving markets was the beginning of the oil price wars between Russia and Saudi Arabia, causing the largest single day drop (over 20%) since the 1991 Gulf War. News of Saudi Arabia’s plans to pump 25% more crude next month than last month continued to put downward pressure on the market.
In coronavirus news, the World Health Organization officially labelled the coronavirus a pandemic. This caused a rout in equities mid-week and prompted President Trump to enact a travel ban from Europe. The ban went into effect today and will last 30 days.
Prices in Review
WTI Crude opened the week at $32.87. Its path was choppy through the week with mid-week highs followed by further losses. Crude opened Friday at $30.77, a loss of $2.10 (-6.4%). Crude has recovered much of those losses in early trading Friday morning.
Diesel opened the week at $1.2280. It generally followed crude throughout the week. Diesel opened Friday at $1.1380, a loss of 9 cents (-7.3%). Diesel is recovering some of those losses in early trading this morning.
Gasoline opened the week at $1.2324. It followed crude somewhat but had a steeper selloff after mid-week. Gasoline opened Friday at $0.8975, a loss of 33.5 cents (-27.2%). Gasoline in recovering some of those losses in early trading this morning.