The world of crude oil is buzzing right now, as OPEC is currently meeting in Vienna, with a goal of reaching an agreement over production levels within the next 6 months. Oil prices dropped over 3 percent on Thursday as OPEC agreed to cut production. However, the cartel is waiting to decide on the actual size of reduction until after a discussion with Russia. This could delay the decision until Friday, when OPEC is set to meet with non-members.
As organized 4th of July celebrations dissipate in the unbearable mid-summer heat, and Katy Perry’s “Firework” lyrics fade into the hot summer nights, “family trucksters” trekking across our great nation are certainly not celebrating gas prices at the pumps. Fireworks continue to light up the “trading skies” for the bulls as WTI for August delivery is trading near its 4 year high at $73.60 bbl, RBOB is up $0.0339 trading at $2.1424 gal, and HO is up $0.0233 at $2.1917 gal. Since the middle of June, and after OPEC’s decision to increase production to fill the oil production/export void that will be left by re-imposed sanctions against Iran, WTI has rallied nearly 17% or $10.69 bbl.
June 22nd marks the next meeting of the OPEC producers to be held in Vienna. Moving into the second half of the year it is highly uncertain if a global glut has ended.