OPEC, COVID Holding Oil Prices

Oil prices were largely unchanged as the final week of July got underway. West Texas Crude traded near or just below $72 per barrel in Monday’s trade. Patrick DeHaan with GasBuddy noted oil prices have held steady over the past two week not only because of a rapid increase in the number of COVID Delta Variant cases across the country, but also OPEC’s recent decision to increase production. DeHaan added that as we approach the end of summer, he expects fuel demand to cool.

“That is simply on par with seasonal trends.  Americans start to get back to the grind of school and work as we progress toward September.  We really only have two to three weeks left of this peak consumption season before I do think that demand for gasoline will start to take a more noticeable decline starting in mid-August.”

DeHaan added fuel price will also be impacted if fewer Americans return to the office this fall because of the growing COVID case count nationwide.

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