Biden Suspends Oil Drilling Leases in Alaska’s Arctic refuge
June 2, 2021
OPEC+ agreed to continue the existing pace of gradually easing oil supply cuts, as producers balanced expectations of a recovery in demand against a possible increase in Iranian supply. OPEC+ confirmed their plan to return 2.1 million bpd of oil output from May to July, while Saudi Arabia gradually adds 1 million barrels in voluntary cuts it made above and beyond its group commitment. OPEC+ will hold its next meeting July 1. OPEC+ kept it global oil demand growth forecast for 2021 unchanged at about 6 million bpd. OPEC+ did not give any indication what their plan may be beyond July. This may allow for flexibility on the Iran nuclear situation.
POET has acquired Flint Hills Resources’ entire ethanol business.
Energy prices rallied strong yesterday up roughly 2% on the OPEC+ plans, strong fuel demand in the US, no Iran deal as of yet on their nuclear deal, and the US dollar falling to a four and a half month low.
The Transportation Security Administration said 7.1 million people were screened at US airports checkpoints from Thursday through Sunday. Friday was the highest single travel day since March 2020, when COVID-19 cut air travel demand, as 1.96 million people were screened. Tracking firm GasBuddy said Sunday’s US gasoline demand increased 9.6% above the average of the previous four Sundays, the highest Sunday demand since summer 2019.
The head of the IEA, Fatih Birol, said with strong growth coming from the US, China, Europe, there will be a widening gap between demand and supply, which in turn would put further upward pressure on prices.
Descartes Labs said US gasoline demand in the week ending May 28th reached the highest level since the start of the pandemic, increasing by 1.5% on the week to 9.5634 million bpd.
US manufacturing activity increased in May as demand amid a reopening economy increased orders, but unfinished work piled up because of shortages of raw materials and labor. The Institute for Supply Management said its index of national factory activity increase to a reading of 61.2 last month from 60.7 in April.
The Biden Administration suspended oil drilling leases in the Arctic National Wildlife Refuge yesterday.