DeHaan Expects Fuel Prices To Climb
Oil prices started the new year moving up slightly. West Texas rose roughly 3% in Monday’s trade to $76 per barrel. Patrick DeHaan with GasBuddy said it's been a bumpy start to the year.
“Oil prices still a bit lower than what they were a week ago, but oil prices in full rally mode today with China giving us strong indication of a full reopening happening.”
DeHaan said investors don’t know what to make of that opening. He said on one hand, it could drive up demand, pushing oil prices higher. But at the same time, DeHaan said that opening could lead to additional COVID cases triggering additional lockdowns, stalling the Chinese economy.
Either way, as he looks to the months ahead, DeHaan said he expects fuel prices to move higher.
“But I think, we may start going up from here on out. I think the national average may have already bottomed out for the year. And while I'm hopeful that prices won't at record levels in 2023 we still could see gas prices that do flirt with and potentially breach the $5 a gallon mark. Especially in areas of the west coast this spring.”
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