Prices of Crude Oil, Gas Prices and Diesel Fuel as demand is down and inventory is high.
Oil fell towards $66 a barrel on Friday, adding to a drop of nearly 4 percent the previous day, as unemployment data hardened views economic weakness would sap energy demand further and that last month’s rally was overdone. OPEC fuel management for fuel supply and fuel demand has been off the mark.
In the latest sign the economy of the world’s top consumer was still struggling, data on Thursday showed U.S. employers cut 467,000 jobs in June and the jobless rate rose to a 26-year high.
Oil prices have doubled from a low of $32.40 a barrel in December last year and they surged by 42 percent in the last quarter — the largest quarterly gain since 1990.
The latest U.S. government data showed a bigger than expected increase in stocks of motor fuel ahead of the July 4 holiday weekend, typically a time of high demand as the peak of the U.S. summer driving season.
With all of the bad news, we think the rally is over and we will see $60 a barrel for oil before we see $70 a barrel. Of course we are free to change our minds.
For all your fuel management and fuel consulting needs, Sokolis will take care of you. Please reach out to www.sokolisgroup.com or 267-482-6155
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