WTI crude started the short week on Tuesday, trading at levels not seen since early March. Comments from the IEA’s executive director were bullish on demand returning to pre-crisis levels and higher. Souring the rally as the week progressed was OPEC+ news from Russia regarding tapering off production cuts in July. While the original OPEC+ proposal had been to taper the current 9.7 MMbpd cuts down to 7.7 MMbpd in July, markets are hoping for a continuation of current cuts when OPEC+ Meets in June. Discussion between Russia and Saudi Arabia is ongoing, but Russia has made its opinion known. Russia believes the cuts have done their job, and bringing production back online is the best course of action.
Prices in Review
WTI Crude opened the week at $33.30. It bottomed out mid-week but recovered as the week closed. Crude opened Friday at $33.68, a gain of 38 cents (1.1%).
Diesel opened the week at $0.9891. It followed a downward trend throughout the week to close lower. Diesel opened Friday at $0.9313, a loss of 5.8 cents (-5.8%).
Gasoline opened the week at $1.0312. It fell to mid-week and recovered some of the week’s losses to close the week lower. Gasoline opened Friday at $0.9910, a loss of 4 cents (-3.9%).