Unfortunately for anyone who drives a car in the U.S., the price of crude oil has risen about 35% in the past three months. The price of West Texas Intermediate (WTI) crude oil has moved from about $68 per barrel to over $90 since the end of July. This will also have a significant impact on residents of the northern half of the country, as heating oil prices have also seen an uptrend.
The question now for many analysts is whether the price of crude will break $100 per barrel in 2023. The Guardian writes,
FIGURE 1: CRUDE OIL WTI (NYM $/BBL) FRONT MONTH CONTRACT
Source: MarketWatch, data as of 9/18/2023
Reuters reported last week,
FIGURE 2: QUARTERLY PRICE TRENDS FOR BRENT CRUDE OIL
Source: Reuters, data as of 9/15/2023
Impact on consumer gasoline prices
AAA examined prices at the pump last week, noting,
FIGURE 3: NATIONAL GAS PRICE COMPARISON (2019–2023)
Note: Prices are per gallon for regular unleaded gasoline.
Source: AAA (GasPrices.AAA.com)
Heating oil’s upward trend
Trading Economics reports,
FIGURE 4: HEATING OIL IS TRACKING CRUDE’S MOVE HIGHER (USD/GALLON)
Source: Trading Economics, data as of 9/18/2023
Energy sector also trending higher
Bespoke Investment Group took an updated look at the energy sector last week, noting,
FIGURE 5: ENERGY SECTOR (LAST 12 MONTHS)
Source: Bespoke Investment Group
The opinions expressed in this article are those of the author and the sources cited and do not necessarily represent the views of Proactive Advisor Magazine. This material is presented for educational purposes only.