Oil Down Again
CBJ — A spike in COVID-19 cases in a number of states in the United States has resulted in another drop in oil prices, by as much as 2% in some regions of the world.
Although the U.S. is energy self-sufficient, it still purchases a significant amount of oil from other countries. If lockdowns remain in place, or are restarted in some areas, it will again mean a decline in demand for crude oil.
Brent crude futures are down 70 cents to start the week with a barrel selling for just over $38. West Texas Intermediate is off 80 cents to about $35.45 a barrel.
The Organization of the Petroleum Exporting Countries officials will meet to discuss daily production cuts and whether the cuts are having a positive impact on pricing.
OPEC and its allies, collectively known as OPEC+, have been reducing supplies by 9.7 million barrels per day. That quota is set to run out at the end of July, although it may be extended if prices are still deemed too low.