Oil Investors Unimpressed With Announced Production Cut

Despite this week’s oil production cuts, oil prices remain very low. As of Monday, West Texas Crude was trading around $25 a barrel. While OPEC has agreed to trim nearly 10 million barrels a day to stabilize the market, Patrick DeHaan with Gas Buddy says there’s a lot of skepticism on this deal.

“Keep in mind, this deal does not come into play until May 1^st, so that leaves another 2 ½ weeks of daily supply that greatly exceeds demand. It may be more of a story of too little too late.”

DeHaan said adding to that skepticism is the fact that the road to recovery looks very long at this point and there’s no indication when we’ll be able to return to “normal”.

“We’ve seen thousands of events canceled for the next couple of months, and now there’s questions of how long this will go and whether or not we can be safe to spend time with others this summer. So, there’s real uncertainty over whether or not the world can quickly go back to normal, how fast.”

That, he noted has led to a very pessimistic attitude among oil investors

How has this impacted our local diesel prices?