Oil Trades in a Narrow Range Last Week

Oil Trades in a Narrow Range Last Week

Published July 19th, 2020 - 06:00 GMT











Highlights





The consensus within OPEC+ shows a unity capable of bringing the market into balance







Oil prices moved in the narrowest range ever this past week.

Brent crude oil fell by only 10 cents from the week earlier to close at $43.14 per barrel while WTI moved higher by only 4 cents to $40.59 per barrel. 

These prices are extremely close to July average for both benchmarks so far.

Historically large output cuts by OPEC+ of nearly 2 million barrels per day through the end of the year are already well priced into the market.

OPEC's 13 members pumped 22.27 million bpd in June. The 23 OPEC+ producers have successfully achieved 107 percent compliance with their committed cuts, according to OPEC data seen by S&P Global Platts. Non-compliant producers have also committed to make up for their shortfalls in August and September, making the headline cuts larger.

The huge consensus within OPEC+ demonstrates a powerful sense of unity that is capable of bringing the market into balance and adjusting output as needed.

Rising coronavirus cases worldwide continued to cloud the short-term outlook as infection numbers climbed again in some major economies that