After A Turbulent Year, Oil Prices Have Calmed, As Of Recent
It’s safe to say when it comes to oil prices, 2022, has been anything by a typical year. After a summer filled with volatility and fuel prices that rocketed up to levels we've never seen before, Patrick DeHaan with GasBuddy said thing have calmed down relatively speaking. West Texas Crude was trading in the mid-$80 per barrel range in Monday’s action.
The dropping price comes on the heals of OPEC announcing a production cut that starts next month. So, why are prices so soft on that news. DeHaan said there are various reasons for the recent sag by the oil markets.
“Chinese imports have softened, and of course China is a large consumer, so imports softening for such a major consumer are concerning, of course a rising concern of recession, and a strong U.S. dollar have really eaten in to oil prices over the past couple of weeks. And that is likely where some of the weakness in oil prices is coming.”
DeHaan said his expectation is that gasoline prices will continue to drop in the coming weeks. When it comes the future of oil prices, DeHaan said he plans to watch Europe very closely in the coming months.
“I think given the tremulous time, especially in Britain, the likelihood of a global economic slowdown I think is at the top of my list. China policy is certainly something to keep an eye on, and as you mentioned, India is a large oil consumer, it has been buying more and more oil from Russia at a discount. I don’t see a change there in the coming weeks.”
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