Crude prices gave up a dollar yesterday as concerns over Gordon dissipated. This morning prices have levelled off and are beginning to creep a bit higher. WTI crude is trading at $68.92, a gain of 20 cents. Brent crude, the international corollary to America’s WTI index, is trading at $77.56 – that spread of $8.64 is creating a solid pull on American exports and shows that global supplies are growing tighter relative to domestic supply.
Fuel prices are also ticking higher after notable losses yesterday. Diesel prices shed 2 cents yesterday, while gasoline prices were down 3 cents. This morning, diesel prices are trading at $2.2399, a gain of 0.2 cents. Gasoline is trading at $1.9796, picking up 1.5 cents.
The API released their weekly inventory data one day delayed due to the holiday weekend, and the results were fairly benign. Crude stocks fell in line with expectations, while fuel inventories increased. With refinery utilization still seasonally high, it’s no surprise that fuel stocks are still high.
Storm Season Update
With Gordon becoming a non-event, markets are closely monitoring Hurricane Florence as it barrels across the Atlantic at Category 3 levels. There’s a lot of uncertainty regarding Florence’s future path – the storm has defied the odds by growing to this strength, making it less predictable. While many forecasts still show the storm spinning out to sea, it could push farther west and make an East Coast landing. Mansfield is continuing to monitor the storm and will communicate to customers if a fueling impact is expected.
