WTI Crude finished the week slightly higher from open to open, but markets are giving back those gains in trading this morning.
The week started with the Trump administration releasing plans to allow drilling in the Arctic National Wildlife Refuge (ANWR), a contentious area which has long been the source of debate between oil lobbyists and environmentalists. Although the topic is a hot button politically, the announcement will have little effect on oil prices in the short- to medium-term, since production would not begin for nearly a decade.
In inventory news, crude stocks fell for the fourth straight week, but markets were not swayed by the news as demand fears continue to persist with rising COVID-19 infection rates around the world.
This week saw all-time highs for US Equities as the S&P 500 broke records, but those gains were capped by language from the Fed’s FOMC meeting minutes relaying caution and a slower recovery than had been hoped. The effects of the warning spilled over from equities to crude and helped to moderate gains to close the week.
Prices in Review
WTI Crude opened the week at $42.24. It followed a choppy path to end the week slightly higher, supported by US Dollar weakness and falling inventories. Crude opened Friday at $42.75 a gain of 51 cents (1.2%). It has given back most of the week’s gains in early trading this morning.
Diesel opened the week at $1.2447. It generally followed crude throughout the week. Diesel opened Friday at $1.2471, a gain of 0.2 cents (0.2%). It has gone into the red for the week in early trading this morning.
Gasoline opened the week at $1.2525. It also generally followed crude throughout the week. Gasoline opened Friday at $1.2981, a gain of 4.6 cents (3.6%). Prices have tanked in early trading this morning.