The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil slipped further in June, by $1.33 (-1.9%) to $70.25/barrel. That retreat occurred within the context of a marginally weaker U.S. dollar (broad trade-weighted index basis -- goods and services), the lagged impacts of April’s decrease of 3,000 barrels per day (b/d) in the amount of petroleum products demanded/supplied (20.4 million b/d), and accumulated oil stocks that continued trending downward toward the midpoint of the five-year average range (June 2023 average: 459 million barrels).
Selected
highlights from the 30 June 2023 issue of OilPrice.com’s Oil &
Energy Insider include:
“The
almost 10-million-barrel US stock decline has provided a firm pricing floor for
oil prices” during the last week of June, wrote OilPrice’s Michael Kern, “but
the upside remains limited as a string of macroeconomic news -- most notably a
still very robust U.S. labor market -- seem to be pushing the Federal Reserve to
keep on hiking interest rates. As medium sour Mars is now trading a solid $1
per barrel above WTI, things look quite bleak for the U.S. benchmark as it is
weak at a time when it historically should be showing strength, prime summer
driving season.”
As OPEC Meets Again, Not Everyone Is Welcome. As OPEC members will be gathering in Vienna next
week for a two-day deliberative forum called the OPEC Seminar, the organization
has banned
Thomson Reuters, Bloomberg, and the Wall Street Journal from attending the
event.
Norway Approves $18 Billion Worth of New Investments. Norway’s government gave the green light for oil companies to develop 19 new oil and gas fields with investments exceeding $18.5 billion, with almost half of them being developed by Aker BP, a joint venture between BP and Aker ASA.
The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.
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