{"id":127349,"date":"2021-06-02T21:03:11","date_gmt":"2021-06-02T21:03:11","guid":{"rendered":"https:\/\/precoinnews.com\/?p=127349"},"modified":"2021-06-02T21:03:11","modified_gmt":"2021-06-02T21:03:11","slug":"it-could-be-a-hot-summer-ahead-for-oil-prices","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/it-could-be-a-hot-summer-ahead-for-oil-prices\/","title":{"rendered":"It could be a hot summer ahead for oil prices"},"content":{"rendered":"
\n
Oil prices continued to rally Wednesday, and analysts expect prices to continue to rise this summer, possibly spiking to $80 per barrel or higher.<\/li>\n
The rise in prices comes as the demand outlook continues to strengthen. At the same time, the world is now dipping into oil inventories built up last year.<\/li>\n
OPEC+ agreed to stick to its schedule to raise output, but a wild card for the global energy picture remains U.S. producers.<\/li>\n<\/ul>\n
Oil prices could temporarily spike to $80 per barrel or more this summer as demand comes roaring back.<\/p>\n
The reopening economy has already sent crude up about 40% since the start of the year, but a surge in driving by Americans, as well as an increase in goods transportation and air travel, could pressure prices further.<\/p>\n
For consumers, that means the typical early summer peak in gasoline prices could come later in the season. Unleaded gasoline was $3.04 per gallon on average Wednesday, about a penny higher than last week but more than 50% higher than a year ago, according to AAA.<\/p>\n
Brent futures, the international crude benchmark, settled up 1.6% at $71.48 per barrel Wednesday, the highest since Jan. 8, 2020. West Texas Intermediate futures for July were 1.6% higher at $68.83 per barrel, after hitting a high of $69.65, the highest since Oct. 23, 2018.<\/p>\n
"Demand is ramping up very quickly because everybody's driving, and we have the reopening of Europe, which is really starting to happen," said Francisco Blanch, global commodities and derivatives strategist at Bank of America. "India seems to have hit an inflection point, in terms of cases, which in my mind could mean you also get a return of mobility."<\/p>\n