Timely petroleum, renewable fuels, railcar, and storage intelligence from the PFL team.
WTI settled above $40 for the first time since March as rig count data in the US and Canada shows active rigs continued to plummet. Both Brent and WTI rose about 9% last week, supported by a recovery in fuel demand as lockdowns eased and economic activity resumed.
PFL was on a conference call last week with Russia’s Minister of Energy. Russia denies getting involved in any price war and are taking their compliance cuts very serious.
Oil prices rose today, logging a gain for 7/8 of the last weeks. Prices initially rallied earlier on in the session but followed other benchmarks lower as the day continued. US and Canadian rig counts fell to another record low even as higher prices have prompted some producers to start reversing output cuts.
Oil prices rose today as OPEC+ compliance with production cuts continue to improve. However, today’s OPEC panel discussion is unlikely to recommend extending production cuts past August, according to sources.
US crude inventories grew to a record level for a second straight week as prices were down slightly but mostly flat for the day. US crude oil inventories grew by 1.22MM/bpd (compared to a forecasted build of 784K/bbls) to 539.3 MM/bbls.
Oil prices jumped today on improving demand as Brent crude traded back over the $40/bbl mark.
The DOW surged on Friday closing up 477.37 points (or 1.9%) to close out the week at 25,605.54 after a dramatic sell off just the day before where the DOW lost 1,861 points on the day.
Oil just had its work week since April, snapping a six week winning streak while trading mostly flat for the day.
Crude oil prices tanked today as fears of a second wave of the virus rocked nearly every financial market. Certain states, particularly in the West/South, are near or at record high numbers for new cases in a 7 day period