Are Oil Prices Rallying, And What Does That Mean?

You may have heard about the value of oil rallying, but this does not mean we will be seeing a return to July’s $100 per barrel prices anytime soon. The recent uptick has been more modest, moving from a low of $45 per barrel at the end of January to a spike of as much as $52 per barrel in mid-February.

There is reason to believe that oil prices have not hit bottom. In January, Iran’s Oil Minister Bijan Zanganeh has gone on the record saying that their country’s industry could withstand a drop in price to $25 per barrel.

Meanwhile, the US is running out of capacity to store oil. Some of the surplus could be attributed to recent refinery strikes, but the US is also producing oil faster than any time since 1972.

You can read more about oil’s recent rally compared to the decline in oil prices here:
Another Big Reason to Think Oil Prices Aren’t Going Up Soon

About Gabriel Lowenberg

Gabriel Lowenberg is CEO and president of Lowenberg Investment Counsel Inc., an independent wealth investment management firm. The views and opinion expressed in this article are those of Mr. Lowenberg and do not constitute investment advice.

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