Yesterday, WTI crude closed higher as expectations of a US stimulus package was supported by lawmakers reopening negotiations, with Treasury Secretary Steve Mnunchin highlighting that compromise was possible on some topics. The market rose after a presidential Tweet that Democratic leaders in Congress asked to speak with President Trump regarding coronavirus economic relief plans. Markets are continuing to rally in early trading this morning.
Mnunchin stated that both sides agree to providing more money to businesses affected by the pandemic and sending another round of $1,200 direct stimulus payments to individuals. In addition, lawmakers have tacitly agreed to provide school aid to protect student safety while reopening and to give more money to hospitals for research and health efforts. Democrats and Republicans still disagree about $1 trillion in funding for local and state governments, which Trump has labeled a “bailout” for Democrat-run communities. The last round of stimulus gave consumers more money to travel and buy goods, stimulating both gasoline and diesel demand. Adding in school aid could lead more school busses to hit the road once again, increasing diesel demand.
In early trading today, crude prices are up. Crude is currently trading at $42.43, a gain of 49 cents.
Fuel prices are mixed this morning. Diesel is trading at $1.2558, a gain of 1.9 cents. Gasoline is trading at $1.2280, a fractional loss.