This week saw major headlines for oil markets as the coronavirus continues to disrupt everyday life around the globe. On Monday we saw that fuel hit new multi-month lows as restrictions surrounding the new Delta variant continued to increase. This was accompanied by the sixth named storm of the 2021 Atlantic Hurricane Season, which is still making its way toward the US mainland.
The President of the United States also called on OPEC this week to moderate prices, telling them that their current supply increase of 400 kpd is not enough to balance the ever-changing supply chain. To go along with this news that the White House was getting involved with OPEC+, the United States government also released a report showing inflation was 5.4% up from a year prior. Gasoline prices are an important component of consumer spending, so the hefty rise in oil prices has contributed to the high CPI statistics.
Lastly, the end of the week saw the IEA release its new market report for August 2021. According to the IEA, global oil demand will rise 5.3 mb/d on average in 2021 from 2020’s suppressed levels. On the supply end, OPEC+’s deal caused oil supply to rise by 1.7 mb/d, with steady growth expected over the next few months.
Prices in Review
WTI Crude opened the week at $67.88. It opened down from the day opening day prior then tracked steadily upward throughout the week. Crude opened Friday at $68.91, an increase of $1.03 from Monday.
Diesel opened the week at $2.0758. It rose until Wednesday when it hit a decrease but spiked again after. Diesel opened Friday at $2.1000 a gain of $0.0242 from Monday.
Gasoline opened the week at $2.2473. It followed crude throughout the week to close the week higher. Gasoline opened Friday at $2.2723, a gain of $0.025.