The crude market was up for the week from Monday’s open to Friday’s open, but is down substantially in early trading this morning. The major news moving markets this week was all about OPEC+ and its response to the oil demand destruction caused by the coronavirus. OPEC has now proposed an additional 1.5 MMbpd in cuts, dependent on Russia and other non-OPEC countries pitching in.
The Federal Reserve cut rates by 50 basis point in a surprise move between meetings. It was the largest single cut since the 2008 financial crisis. The move was met with skepticism in the markets and did not appear to have the intended effect. Equities fell sharply on the news and crude followed as the week progressed.
Prices in Review
WTI Crude opened the week at $43.70. It moved higher to start the week but gave back those gains as the week progressed. Crude opened Friday at $46.09, a gain of $2.39 (5.5%). It is giving back most of those gains in early trading on Friday.
Diesel opened the week at $1.4595. It followed crude through the week. Diesel opened Friday at $1.4917, a gain of 3.2 cents (2.2%). Diesel is giving back all those gains and more in early trading on Friday.
Gasoline opened the week at $1.4709. It generally followed crude throughout the week. Gasoline opened Friday at $1.5189, a gain of 4.8 cents (3.3%). Gasoline is trading lower than the Monday open in early trading on Friday.
