Market News

Oil Trades Weaker in Early Trade

The benchmark Crude WTI is down 0.71% to $84.96 today at 4.21 a.m. EST. after missiles that landed in Poland were deemed unintentional. Further, Russia has agreed to renew the deal for the export of grain shipments from the Black Sea.

At the same time, increasing COVID-19 cases in China could put a dampener on hopes of demand increasing from the world’s second-largest economy.

Data from the Energy Information Administration (EIA) indicate crude stockpile declined by 5.4 million barrels last week. While energy producers in the U.S. stay focused on cash generation rather than ramping up output and energy exports to Europe remain elevated, a report from the Wall Street Journal notes that the spread between diesel and gasoline prices is widening in the U.S.

The spread has now widened to $1.61 a gallon from $0.23 a year ago. Energy price disruptions continue to weigh on the margins of businesses as transport costs inch up.

Natural gas prices, in the meantime, are up 2.48% to $6.35 today but still remain closer to lows last seen in July.

The Energy Select Sector SPDR ETF (XLE) has gained 61% year-to-date.

Here are related tickers for this article:

  • United States Oil Fund LP (USO)
  • ProShares Ultra Bloomberg Crude Oil (UCO)
  • United States Natural Gas Fund LP (UNG)
  • Cheniere Energy (LNG)
  • Chevron (CVX)
  • ConocoPhillips (COP)
  • Occidental Petroleum (OXY)

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