Prices are continuing to hover between $70 and $72 yesterday, unable to make a decisive break higher or lower. While demand reports have been disappointingly low, supply is also tight – leaving traders unsure how to sort out the two. This morning WTI crude is trading slightly below yesterday’s closing price at $71.27, a loss of 65 cents.
Fuel prices are also wandering aimlessly as well. Diesel prices are currently trading at $2.3322, down 0.8 cents from yesterday’s close. Gasoline prices are trading at $1.9743, a down 0.3 cents.
The API released their weekly inventory data, which showed a surprise crude draw but mixed results for fuel stocks. The API’s data showed crude stocks down 2.1 million barrels, compared to the market’s expectation of a 2.2 MMbbl increase. Some of that crude decline might be traceable to Hurricane Michael, which caused oil production facilities to shut down in the Gulf of Mexico; however, the storm should have a stronger impact on next week’s report.