This week began with oil prices taking a nosedive yesterday, with WTI falling $1.27/bbl to just below $44.50/bbl and Brent falling $1.25/bbl to $47.35/bbl. Refined products also kicked off the week in decline, closing down $0.0453 on diesel and down $0.0471 on gasoline. Overnight, WTI was making its way back toward $45/bbl and Brent to $48/bbl. Today prices have found some support, recovering from the drop-off yesterday. As of 11:30 am this morning, diesel had gone up $0.0350 and gas was up $0.0175. The U.S. dollar index dropped below the $96 mark as expectations of crude inventory withdraws came about, which very well may have caused this rally.
API data will be released later this evening, which is likely to confirm expectations of lower inventory levels. The EIA will release its own set of weekly data tomorrow, with the focus primarily on crude oil production. According to Reuters, the movements in the U.S. oil market appear to be the only supporting elements to oil prices during the last few months, with uncertainty over the Chinese economy wreaking havoc on a global scale.
In other news regarding weather, Tropical Storm Joaquin is spinning northeast of the Bahamas and heading west towards the Gulf Coast. In 5-10 days the Ohio Valley and East coast are projected to be hit with heavy amounts of rain, which may cause flooding. Local market pricing may be affected by this inclement weather.