Despite COVID OPEC Oil Prices Not Expected To Move Much In Coming Weeks

The increasing number of coronavirus cases here in the U.S. and internationally continues to weigh on the minds of investors, despite the fact that gasoline demand remains high, as many Americans continue to drive and work. Patrick DeHaan with GasBuddy said oil prices continue to hold steady, marking five straight weeks in the in the $40 per barrel range, and that’s a rate he does not see changing much in the immediate future.

This despite OPEC looking to increase production by as much as 1.5 million barrels per day. You may remember OPEC trimmed roughly ten million barrels from daily production when oil prices were in record low territory this spring.

With OPEC increasing production and COVID-19 case counts on the way up, could we see a return of oil prices below $20 per barrel, or even lower? DeHaan said don’t count on it.

“So far, unless things worsen drastically, I really don’t think oil demand will recede so quickly. We’ve already seen and continue to see a big hit to get fuel demand and diesel demand is a bit lower, but gasoline demand has been the one bright spots and stands up some 50% compared to early April when we hit out low.”

What has that done for our local diesel prices?