Energy prices fell last week, as WTI crude oil, diesel and gasoline denominated in USD dropped -6.7%,-.8% and -5.2% respectively.
Saudi Energy Minister Khalid Al-Falih stated on Thursday that the main OPEC member nations had reached a pre-agreement on extending output cuts for the cartel. The current agreement reduces their production by 1.2 million barrels per day and ends in June 2017. He also stated that even though OPEC is satisfied with the commitment by producer nations to scale back output, it is still not enough to bring down global petroleum inventories. Al-Falih did not provide any clarifications on the terms of this pre-agreement to extend cuts. Details should become available around the time of the next OPEC meeting on May 25.
The results of Sunday’s first round of the French presidential election will allow a showdown between centrist Emmanuel Macron and far-right candidate Marine Le Pen. Markets took a positive view of the first round, given that Ms. Le Pen wants to do away with the single currency and this two-horse race should lead to an easy victory for Mr. Macron.
Fuel prices in CAD/liter dipped a few cents last week. We encourage clients to contact us to review their fuel consumption hedging strategy.
