U.S. Oil Prices Had Their Largest Monthly Gain in History

June 3, 2020

Yesterday, data showed U.S. oil prices had their largest monthly gain in history in May. This comes as welcome news following the recent struggle the oil and gas industry faced the last few months, due to a major fall in demand and influx in supply from the combined Coronavirus outbreak and price war between Saudi Arabia and Russia.

Forbes reports:          

The American Petroleum Institute (API) estimated yesterday a small crude oil inventory draw of 483,000 barrels for the week ending May 29, far higher than the 3.038 million barrels analysts had predicted. That sent trading way up. By the end of the day the price of U.S. Brent crude was trading at $39.66.

The rapid return to ‘normal’ will be unwelcome news to climate campaigners, who had hoped the crisis would spur a major pivot on energy. Over the last two months, shares in renewable energy companies have soared. Experts predict that renewable power will still be the only energy source with growth this year.

Last month, oil prices dropped into negative numbers for the first time. Analysts stated the oil industry was in the worst crisis since the Great Depression. The historic market turbulence forced companies to shed spending costs. Unfortunately, for American energy workers that meant tens of thousands of them lost their jobs.

The recent market rebound provides an optimistic outlook for the industry that represents 5.6% of the U.S. workforce – about 9.8 million jobs. The country, and the eco-left, should be thankful for the vital industry that kept hospitals running and lights on during this pandemic and continues to provide reliable and affordable energy across the country.

We at Power The Future welcome any and all relief to the industry as it starts to recover and the country begins to reopen. The rest of the country should follow suit.