Oil at Six-Year High

Today, West Texas Intermediate crude futures traded as high as $76.98, the highest price per barrel since November 2014.  On Monday, news of OPEC+ not increasing oil production hit the news.  OPEC+ cut production by nearly 10 million barrels a day, in April 2020 to support lower demand from the pandemic.  OPEC+ has been meeting monthly since to increase production gradually.  The reason this month’s meeting didn’t end in an increase is the United Arab Emirates rejected the proposal.

What’s that mean for the average consumer? Well, it’s pretty obvious, but can result in higher prices at the pump and higher prices to heat your home in the winter.  According to Energy Information Administration’s weekly report, the price of diesel in the U.S. is up 7.1 cents from $3.406 to $3.477, from last week to this week.  That is $1.09 higher than the same time last year.  The biggest increase was seen in the Midwest, where diesel price increases were over 10 cents from last week.

OPEC+ said they will meet again in due time, but no date is set.  If supply doesn’t soon meet demand, expect for oil prices to continue to rise.

 

 

Oil touches six-year high after OPEC fails to get deal, then turns negative (cnbc.com)

 

Diesel prices up in all regions – Land Line

Written by:

I began my career at Guttman as a dispatcher for Source One. I feel this foundation has allowed me to understand the different layers of our organization. Through that knowledge, I am able to better service our customers, with on-time delivery and competitive prices.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED “AS IS,” WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.