Brace yourself for higher oil prices.
I just paid about $3.15 a gallon this morning. Others, I’m sure, are paying far more.
All as oil pushes back above $75 — the highest since 2018 – with OPEC meeting over an increase in global demand.
“Going into formal deliberations being held remotely, Saudi Arabia, OPEC’s de facto leader, and Russia agreed Thursday to take up a proposal that includes a boost of about half a million barrels a day starting in August, according to people familiar with the talks, and then gradually increasing so-called OPEC+ output by a total two million barrels through December,” says The Wall Street Journal.
Unfortunately, that will still keep the oil market tight this summer, says UBS analyst Giovanni Staunovo. All as demand rises on reopenings, and summer driving season.
Not helping, global oil demand is around 97.5 million barrels per day. That could rise by another 2.2 million by year end, says Goldman Sachs, as noted by CNN. That would leave us with a shortfall of about five million barrels a day.
Stay tuned for more on this story. We’re just waiting to see what OPEC decides.
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