WTI Crude finished the week higher after a choppy week of trading. The OPEC+ meeting on Wednesday dominated the news this week with the cartel deciding to ease production cuts beginning in August as expected. After a few months of 9.7 MMbpd cuts, the group will ramp down cuts to just 7.7 MMbpd. Traders had priced that move into crude early in the week, so the actual announcement was muted in the markets.
Inventory news reported by the EIA lifted markets mid-week with a sizeable crude draw, a surprise draw in diesel, and a larger-than-expected draw in gasoline. The draws across the board would seem to indicate returning demand even amidst surging coronavirus cases and returning lockdowns.
Prices in Review
WTI Crude opened the week at $40.35. It peaked mid-week on inventory news and fell to close the week. Crude opened Friday at $40.72, a gain of 37 cents (0.9%).
Diesel opened the week at $1.2396. It fell to start the week and rose mid-week on EIA inventory news but fell to end the week. Diesel opened Friday at $1.2286, a loss of 1.1 cents (-0.9%).
Gasoline opened the week at $1.2785. It followed a choppy path to close the week lower. Gasoline opened Friday at $1.2339, a loss of 4.5 cents (-3.5%).