Last week WTI crude traded in a range of USD 43.75 to 46.05/barrel. Overall, WTI closed the week down 2.32%, Brent Oil fell 2.70% and diesel was down 1.51%. The rise in the value of the U.S. dollar last week likely helped place negative pressure on the price of oil.
The market was marked by the following events:
- U.S. gasoline consumption in June reached a record 9.64 million barrels/day, up 2.7% from one year earlier. Despite this significant increase in demand, gasoline reserves were at their highest seasonal level in two decades.
- Iran is in talks with Mitsui & Co., Ltd. (T:8031) and Total SA (PA:TOTF) as part of its push to attract USD 60 billion in foreign investment to double the country’s output over the next decade.
- The oil-field services company Schlumberger NV (NYSE:SLB) joined its competitor, Halliburton (NYSE:HAL), in saying that North American prices have bottomed out for the second half of 2016 and should rise through the rest of the year.
On Wednesday, July 27 the markets will react to the U.S. Federal Reserve’s monetary policy decision. Any appreciation in the value of the U.S. dollar will lead to higher fuel prices in Canadian dollars.
Have a good week!