Gasoline And Diesel Prices Are Up Today While American And European Crude Oil Benchmarks Are Drifting
Refined product futures are drifting higher this morning, attempting to recover from last week’s selling that saw prices down 4% by the end of Friday. Gasoline and diesel prices are up around .5% today while American and European crude oil benchmarks are drifting lower to start the day.
The commitments of traders report showed a 10% drop in WTI net length held by hedge funds last week. Brent crude likewise saw a decline in long bets made by Money Managers for a sixth week in a row, lending credence to the idea that the recent trend of lower oil prices might be nearing completion.
Lower oil prices might not be the best this for everyone though: Baker Hughes reported yet another increase in active oil production platforms. Seven rigs started pumping last week, bringing the total active count to 563, 250+ more than were running this time last year.
The White House is set to announce its decision on the new Federal Reserve Chair this morning. While this might be one of the most important economic decisions Biden has made so far in his presidency, political factors might be taking the reigns in this nomination as the president seeks to secure support for his ~$2 trillion healthcare, education, and climate-change legislation.
Some technical oscillators are hinting at an oversold refined product futures market while weekly charts place both prompt month gasoline and diesel futures in a clearly defined downward trend. Lower prices are expected for both contracts with the $2 mark a viable price target in the near term.