Oil Prices Could Skyrocket in the Near Future, Reports Say

Oil Prices Could Skyrocket in the Near Future, Reports Say

(LibertySociety.com) – In April 2020, travel in the US essentially came to a halt. Businesses closed their doors and sent employees to work from home or laid them off. Many Americans were locking themselves in their homes, refusing to go out as the number of COVID-19 cases rose across the country. Although the restrictions impacted the country negatively in many different ways, one good thing that came out of it was lower gas prices. Now, it’s possible that’s about to change.

Lockdowns and Low Prices

When the country locked down in April, the demand for gas dramatically decreased. People didn’t need to fill up their tanks as much because they weren’t going anywhere. Airlines also saw travel drop, and the companies weren’t scheduling as many flights, causing the prices to drop even more. Eventually, the price per gallon of crude oil dipped into negative numbers for the first time in history.

As the country began opening back up, consumers enjoyed the lower prices at the pump. Unfortunately, as demand rises, so do the prices.

America Emerges

On February 24, Bloomberg reported the price per gallon of oil could reach more than $100 per barrel by the end of 2022, and in the wake of the economic downturn. Azerbaijan’s Socar Trading SA believes the increase will happen in the “next 18 to 24 months.”

Goldman Sachs Group Inc. recently changed its third-quarter forecast, saying oil will increase from $10 to $75 a gallon. The prices aren’t just increasing in America; London is seeing it too.

If the prices shoot up over $100 per barrel, it will be the first time since 2014. Although it’s a windfall for the oil and gas industry, the American people will feel it when they head to the pumps. That could lead to a decrease in travel again and could hurt the overall economy. These forecasts are speculative for now. We will all have to wait and see what happens with the markets.

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