OPEC Holds Production, Pushing Oil Prices Higher

Oil prices have now returned to levels we have not seen since prior to the pandemic. In Monday’s action, West Texas Crude was trading around $66 per barrel, the highest prices we’ve seen since late 2019. Patrick DeHaan said the higher prices are thanked to limited production and increased demand. And he noted with OPEC announcing last week they would not increase production, that pressure is expected to remain.

“Barring any sort of unexpected reversal on COVID-19, I would think that oil prices still have some rally left after the announcement last week that OPEC would not meaningfully increase oil production.  We’re starting to feel a little bit bubble-ish here.  The price of oil escalating pretty significantly at a time that the economy is still a little bit lackluster. But things moving forward continue to point to oil prices being pretty hot.’

With oil prices moving higher, DeHaan said he expects to see the United States increase its oil production, which could mean more activity in the North Dakota area.

The national average for a gallon of diesel increased six cents this week to $3.00, Washington’s diesel price jumped seven cents higher to $3.17, Oregon’s prices held at $3.00, while Idaho’s average shot up 17 cents to $3.12 a gallon.

What's the expectation for fuel prices in the coming weeks? Catch our entire conversation with DeHaan.

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