Oil Prices Move Lower As COVID Numbers Move Up

After weeks of climbing steadily, oil prices dropped considerably in Monday’s trade, with West Texas Crude Oil trading around $67 per barrel. The sharp drop came shortly after OPEC announced an increase in oil production. In addition, coronavirus cases continue to weigh on the minds of investors. Patrick DeHaan with Gas Buddy said investors are keeping a close eye on the number of Delta strain cases nationwide.

“New coronavirus cases continue to reach multi-month highs, and that’s leading to a sell off in markets.  So, a lot to digest.  But for now, oil plummeting, and we will likely start to see gas and diesel prices moving downward by later this week.”

COVID-19 not the only issue on the minds of investors and those in the oil markets.

“Inflation has been one of those factors, especially with CPI numbers out last week showing that inflation is still very prevalent and we’re dealing with some of the highest inflation rates since the 1980s.  That is having an impact on prices as well.  And certainly part of the easy money, the unemployment benefits, the amount of money flowing into the economy is likely causing some of that inflation.”

DeHaan added he things oil prices will start to naturally slowdown in the coming weeks. But warned if COVID-19 case counts increased at a greater clip nationwide, that could take a “big bite” out of oil prices.

Is it just the U.S. consumer that’s dictating oil prices?

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