WTI crude finished the week relatively unchanged after an up and down week of trading. OPEC met on Monday and reiterated that it would support a balanced market. Saudi Arabia stated, “No one should doubt the group’s commitment to providing support.” Still, the group did not formally commit to maintaining current production levels. Markets are still questioning whether the current plan to raise output in January 2021 will hold.
In inventory news, a surprise build in gasoline stocks put downward pressure on the market mid-week. Rising coronavirus cases in the US and Europe are causing fear about the pace of economic and fuel demand recovery. According to the EIA, over the past four weeks, motor gasoline product supplied averaged 8.6 million barrels a day, down 8.7% from the same period last year.
The return of up to 500 kbpd of Libyan crude to the international market caused concern over a supply glut this week. The already oversupplied market is being held in check by OPEC+ supply cuts of 7.7 MMbpd. All eyes are on OPEC+ and how they will address the additional supply.
Prices in Review
WTI Crude opened the week at $40.69. It followed a choppy path throughout the week. Crude opened Friday at $40.61, a decrease of 8 cents (-0.2%).
Diesel opened the week at $1.1766. It was up and down throughout the week but closed the week lower. Diesel opened Friday at $1.1588 a loss of 1.8 cents (-1.0%).
Gasoline opened the week at $1.1650. Like the rest of the market, it followed a choppy track throughout the week. Gasoline opened Friday at $1.1585, a loss of 0.7 cents (-0.6%).