MARTINEZ, CALIFORNIA – MARCH 3: Fuel prices will be displayed at a Speedway gas station on March 3, 2021 in Martinez, California. (Photo by Justin Sullivan / Getty Images)
TO Newsroom
UPDATED 07:30 PT – Sunday 14 March 2021
The price of crude oil will reach levels not seen since 2014. According to recent reports, a barrel of crude oil now stands at about $ 65 and analysts said they could rise to more than $ 100 in the next six to twelve months.
Meanwhile, US gas prices rose by more than 20 percent 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 in the summer.
MARTINEZ, CALIFORNIA – MARCH 3: Gas prices will be displayed on March 3, 2021 in Martinez, California, at a 7-11 gas station across from the Shell refinery. (Photo by Justin Sullivan / Getty Images)
“We only see supply increase in October, which means the oil price can run out of here pretty easily,” said Nancy Tengler of Laffer Tengler Investment. “Our expectations are around $ 80 a barrel in the summer, so it’s strong for most oil supplies.”
OPEC members agreed to reduce production after crude oil prices fell dramatically during 2020. This was mainly due to a lack of demand during the economic downturn.