Mid-Week Review – June 2, 2021

Memorial Day gas prices are the highest in seven years and could stay high all summer

Gasoline prices are expected to be the highest for a Memorial Day weekend in seven years, and prices could stay elevated all summer, as Americans take to the road in a post-coronavirus pandemic driving spree. The current average price for a gallon of unleaded gasoline of $3.04 per gallon, 16 cents more than a month ago and $1.08 per gallon higher than last year, according to AAA. The motor club federation expects 37 million Americans to travel this weekend, a 60% increase over last year when the economy was still shut down. Click Here to read more from CNBC.

Oil Price Hits Two-Year High as OPEC Sees More Demand
The global oil-price benchmark closed above $70 a barrel for the first time in two years Tuesday on investors’ optimism that improving demand and a dwindling supply glut may mean the market can absorb any additional production from OPEC and its allies. Brent crude rose 93 cents, or 1.3%, to $70.25 a barrel, the highest close since May 2019. West Texas Intermediate futures gained $1.40, or 2.1%, to $67.72 a barrel. The U.S. gauge settled at its highest level since October 2018. Members of the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, on Tuesday agreed to continue relaxing curbs on oil production, signaling their confidence in improving oil demand and a drop in the global supply glut. Prices began rallying after a technical committee within the cartel on Monday confirmed forecasts for a rebound of six million barrels a day in world oil demand this year, according to people familiar with OPEC and its allies. Click Here to read more from the Wall Street Journal.

Oil extends gains on OPEC+ supply discipline and demand prospects

Oil rose on Wednesday, supported by an OPEC+ decision to stick to its plan to restore supply to the market gradually and by the slow pace of nuclear talks between Iran and the United States. Brent rose 83 cents, or 1.2%, to $71.08 a barrel by 1121 GMT. U.S. West Texas Intermediate (WTI) crude was up 69 cents, or 1%, at $68.41. “The strong demand dynamics and likely delays in the Iran nuclear deal negotiations pushed oil prices above the much-watched $70 per barrel level,” said Norbert Rucker, analyst at Swiss bank Julius Baer. Click Here to read more from Reuters.

Oil prices gain 1%, boosted by U.S. economic data

Oil prices rose 1% on Thursday, bolstered by strong U.S. economic data that offset investors’ concerns about the potential for a rise in Iranian supplies. Brent rose 59 cents, 0.9%, to settle at $69.46 a barrel. U.S. West Texas Intermediate (WTI) crude rose 64 cents, or 1%, to settle at $66.85 a barrel. The number of Americans filing new claims for unemployment benefits dropped more than expected last week, according to data from the U.S. Labor Department. Click Here to read more from Reuters.