Early morning prices edged up due to geopolitical news of French airstrikes in Syria, after Friday’s horrific attacks in Paris, but the global crude glut outweighed those concerns on the market. Oil is currently trading near its six-year low, and the main factor preventing prices from slipping off the edge is the strong and healthy global demand. However, the prices of oil and other commodities may come under pressure in the aftermath of the attacks.
The market is currently trading at $40.22 for WTI crude, (-$0.52), and both heating oil and RBOB are down $.0200 and $.0265 respectively. Large pullbacks and bearish sentiments were seen in most U.S. spot gasoline markets last Friday. Chicago CBOB weakened 9.84cts/gal and is 11cts under the MERC, while RBOB weakened more than 9cts/gal, and is trading almost 9 cents under the MERC. For our region, keep an eye out for weaker prices west, which will in turn cause product to flow from west to east. In other news, the 2-month trend of weekly decreases in oil rig counts here in the U.S. came to an end last week as Baker Hughes announced an addition of 2 rigs.