MARTINEZ, CALIFORNIA – MARCH 03: Gas prices are displayed at a Speedway gas station on March 3, 2021 in Martinez, California. (Photo by Justin Sullivan / Getty Images)
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Crude oil prices are expected to reach levels that have not been seen since 2014. According to recent reports, a barrel of crude oil now hovers around $ 65, with analysts saying they can see that figure rise to more than $ 100 in the next six to 12 months.
In the meantime, gas prices in the US increased by more than 20% between January and March. Analysts said OPEC is unlikely to increase oil production until it reaches a five-year average oil supply, which could happen sometime in the summer.
MARTINEZ, CALIFORNIA – MARCH 03: Gas prices are displayed at a 7-11 gas station in front of the Shell refinery on March 3, 2021 in Martinez, California. (Photo by Justin Sullivan / Getty Images)
“We don’t see any increase in supply until October, which means that the price of oil could run smoothly from here,” Nancy Tengler, of Laffer Tengler Investment. “Our expectations are around $ 80 a barrel in the summer, so this is high for most oil stocks.”
OPEC members agreed to cut production after crude oil prices fell dramatically in 2020. This was driven in large part by the lack of demand during the economic downturn.