Oil Prices Continue To Move Higher
Oil prices continue the march higher we’ve seen through the first three weeks of 2023. West Texas Crude was up slightly in Monday’s trade, around $81 per barrel. Patrick DeHaan with Gasbuddy said there are several issues pushing oil prices higher, and tops on that list, China.
“Reopening its economy, the end of the releases from the strategic petroleum reserve, as well as a weakening U.S. dollar, and concerns that with new sanctions being slapped on Russia by the E.U. on February 5th that the market is in short supply and so oil prices have been going up and that's pushed up gasoline and diesel prices.”
DeHaan said those new sanctions set to start next month will undoubtedly have an impact on oil and fuel prices.
“Sanctions will start on February 5th that apply to refined products from Russia. The European Union's going to cut off the flow of those refined products and that's going to mean the market is going to have a deficit. It's unknown if Russia will be able to market those refined products elsewhere and could lead to further tightness in the global balance of supply and demand when it comes to things like gasoline diesel and jet fuels.”
Another issue DeHaan says will start to push fuel prices higher in the United States, several refineries will start to prepare their transition from winter blends of fuel to summer, which is typically paired with maintenance work.
What does DeHaan expect from fuel prices in the coming weeks?
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