DeHaan: OPEC, COVID Numbers Have Investors Concerned

After a considerable sell off late last week, that saw oil prices drop to their lowest levels since May, the price of a barrel of oil climbed Monday to roughly $65. Patrick DeHaan with GasBuddy noted the sell off last week was spurred by a one two punch; rising COVID cases and OPEC increasing oil production. DeHaan added that combination continues to make investors nervous.

“As long as OPEC stays the course there’s going to be additional production, but there may not be demand to absorb that production.  So, we could tilt the balance too far in the other direction and the concern is that there may be too much crude oil for the global circumstances that we’re seeing.”

But with oil prices, does that mean we can expect price relief at our local gas or diesel stations in the not too distant future? With Labor Day weekend fast approaching, DeHaan says yes.

“And with the conclusion of the summer driving season, we will likely start to see demand decrease more notably especially with schools reopening and summer vacations wrapping up, there’s more likelihood of a downward trend and thus a likely continued overall decline in the price of oil.”

DeHaan added transitioning to winter blends of fuel in the next couple of months should also help ease fuel prices as well.

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