Crude Oil Ready to Retest 52-Week Highs
OPEC+ is managing the market to extract the highest price from US consumers
Inventory data is bullish
BNO and USO are the crude oil ETF products
Last week, the NYMEX crude oil price for June delivery took the stairs higher towards the early-March high. As vaccines create herd immunity to COVID-19 in the US, people are returning to work and venturing out again. As of May 7, nearly half the US population received either the Pfizer (PFE), Moderna (MRNA), or Johnson and Johnson (JNJ) vaccines.
The gasoline demand, an oil product, has soared. The gasoline price rose from a low of 37.60 cents per gallon wholesale to over $2.12 at the end of last week. The rise in gasoline continues to underpin the crude oil price. Moreover, US output has declined from a record high of 13.1 million barrels per day in March 2020 to below 11 mbpd as of April 30. The shift in US energy policy makes it unlikely that US production will return to its 2020 record high
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