This Week in Review
This week brought a sharp break from rising oil prices, with crude oil shedding several dollars from its lofty prices. Saudi Arabia and the UAE’s compromise on Wednesday paved the way for OPEC+ to begin hiking their output each month, bringing markets closer to balance. Even with the agreement, though, some forecasters are still calling for oil prices to rise to $80/bbl this summer before cooling in Q4.
The Saudi-UAE agreement will enable the UAE to pump more oil after the original OPEC+ deal expires in April 2022, though not quite as much as the UAE’s original request. Now that both parties agree, OPEC+ can move forward with increasing output by 400 kbpd each month while also extending cuts from April 2022 until the end of next year.
Retail gasoline prices hit an 8-year high earlier this week, before the OPEC deal sent prices lower. With prices at the pump well over $3 in many areas of the United States, gasoline is almost a dollar higher than it was last year. Gas prices are expected to remain high for some time until the supply chain can balance out, but the OPEC+ deal will undoubtedly help with subduing high retail prices in the future.
This Week in Energy Prices
Today crude opened at a price of $71.48, a change of $3.26 from Monday’s opening price of $74.74. Crude dropped this week especially on Wednesday following the announcement of the OPEC+ deal. Today’s opening price of crude was the lowest in a one-month period.
Today diesel opened at $2.1034, a change of $0.0493 from Monday’s opening price of $2.1527. Tuesday’s opening price of $2.1034 represented the lowest opening in a two-week period, and prices showed many changes throughout the week, with the biggest drop off happening between Wednesday and Thursday.
Today gasoline opened at a price of $2.2456, a change of $0.0413 from Monday’s opening price of $2.2869. Prices shifted throughout the week in correlation with the ongoing volatility shown in crude and diesel. Gasoline showed its highest drop off between Thursday and Friday.
This article is part of Daily Market News & Insights
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