MARTINEZ, CALIFORNIA – MARCH 3: Gas prices are shown at a Speedway gas station on March 3, 2021 in Martinez, California. (Photo by Justin Sullivan / Getty Images)
In Writing
UPDATED AT 7:30 AM PT – Sunday, March 14, 2021
Crude oil prices are expected to reach levels not seen since 2014. According to recent reports, a barrel of crude oil is now hovering around $ 65 and analysts say they could see that number rise above $ 100 in the next six to 12 months.
Meanwhile, gas prices in the United States have risen more than 20 percent between January and March. Analysts said OPEC is unlikely to increase oil production until it reaches an average of five years of oil supply, which could happen sometime in the summer.
MARTINEZ, CALIFORNIA – MARCH 3: Gas prices are shown at a gas station 7-11, opposite 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 the price of oil can work really well from here,” said Nancy Tengler of Laffer Tengler Investment. “Our expectations are around $ 80 a barrel in the summer, so that’s bullish for most oil stocks.”
OPEC members agreed to reduce production after crude oil prices fell sharply during 2020. This was mainly driven by lack of demand during the economic downturn.