Biden Announces Infrastructure Deal
June 25, 2021
Energy prices closed higher in yesterday’s trading, with WTI crude oil trading at the highest level since October 2018. Energy prices continue to rally as the data shows that the crude oil supply is much lower than rising demand in the United States, China, and Europe.
OPEC+ at its meeting on July 1 is expected to announce an increase to production for August. Their goal will be to help offer more supply to meet rising demand and keep prices from getting to high while not offering too much to the market to keep prices supported. The $70 level seems to be a support level that many think could hold, and I am sure that OPEC+ would be just fine with WTI prices around the $70 dollar mark.
The 3rd and final official estimates for US GDP for Q1 was released yesterday and it matched expectations of a 6.4% rise from the previous quarter. Real consumer spending rose by 11.4%.
According to IHS Markit, some gasoline stations in at least six US states are experiencing temporary fuel shortages because there are not enough tanker truck drivers to deliver fuel. Fuel hauling companies that reduced staff during the pandemic are struggling to hire back drivers that found jobs elsewhere, leaving Florida, Iowa, Ohio, Washington, Oregon, and Colorado with fuel shortages at stations. OPIS stated that the supply constraints have only been a cause of inconvenience for some drivers and had not reached the level of a crisis. It said the driver shortages will likely affect fuel deliveries for another 12 months.
President Joe Biden announced, “we have a deal”, on an infrastructure spending deal after meeting with a group of bipartisan senators.