COVID Numbers, OPEC, Stop The Climb Of Oil Prices

After a fairly quiet start to the year, oil prices moved substantially higher in February and March, with oil prices around the $60 per barrel mark. However, to start the month of April, that increase has tapered off, with oil prices around $59 in Monday’s trade. Patrick DeHaan with GasBuddy said two factors has pumped the breaks on the oil price increase. One the increase in coronavirus cases nationwide and across the globe, which he said has limited the future demand potential of oil.

“We also saw OPEC increase oil production by about 350,000 barrels per day.  Now, that won’t start until May, but those two factors, the uptick in COVID and OPEC increasing production have been enough to blunt the increase or the continued rally in the price of oil.”

DeHaan said things are looking better now on the international scene than just a few months ago. What does that mean for oil prices, and your fuel prices in the coming months?

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekmedia.com