Oil prices are moving higher, and for the first time since late 2019, prices are not being dictated by the coronavirus.
West Texas Crude was trading in the $88 a barrel range in Monday’s action.
Patrick De Haan with GasBuddy says from Russia and Ukraine, to Kazakhstan as well as Libya, investors have a lot to digest.
“The forefront of concern right now has to deal with geopolitical tensions, but the coronavirus pandemic continues to weigh, more in the back seat at present time, and of course, gasoline consumption has been weak seasonally, that also is kind of in the back seat to what’s going on overseas with these geopolitical tensions, but I do expect as we progress to spring, we will start to see rising demand and that will become more of an issue in the limelight.”
De Haan noted there is concern that geopolitical unrest could spread beyond the current hotspots.
“There’s a lot of unrest, the possibility that China would target Taiwan remains on the radar of the market, but more in a minor role. But, there’s so much going on out there [geopolitically], all are pushing oil prices higher, and I see very little downside possibility and really only upside possibility as we progress toward the spring.”