This morning the market is rallying, with crude up $2.30 to $39.56, gasoline up $0.0748 to $1.4560 and ULSD up $0.0722 to $1.1979. Some believe this is due to Janet Yellen’s comments yesterday confirming the strength of the US economy and refuting any notion that we are in a “bubble ready to burst.”
Others think the rally stems from news that the Kuwait OPEC governor and Russia’s energy minister are both optimistic that an output deal or potentially even other proposals will be made at the April 7 Doha meeting. Some sources have speculated that Russia’s output may decrease slightly this month to 10.84-10.86 million bpd from March’s 10.91 million bpd.
A fire was reported at the ExxonMobil Baytown refinery yesterday. The furnace fire was associated with a light ends unit. ExxonMobil reported that there will be no impact to production.
The markets closed down yesterday with crude down $0.49 to $37.26, gasoline at $0.0135 to $1.3812 and ULSD down $0.0146 to $1.1257.