My first car was an old-worn out 1976 Chevy Monte Carlo. Much like my dog does now my old Monte left its mark everywhere I parked it. It used and leaked oil about as fast I could put it in. I guess you can say that’s when I started paying attention to oil.
Right now, oil and everything made with oil seems to be getting crazy expensive. What is more concerning is that Brent oil prices are surging again this week.
Brent crude oil price per barrel (according to Yahoo Finance)
1st of December: $69
1st of January: $78
1st of February: $89
1st of March: $112
23rd of March: $121
Brent oil could possibly hit $150 a barrel or higher this year as the war in Ukraine hits at the same time as rising demand from people itching to travel after the pandemic.
The price of Oil was already high before Putin invaded Ukraine but the war compounded it. The sanctions on Russia led oil prices to nearly hit $130 a barrel in the first week of March because it is the world’s second-largest crude oil exporter. This punishes Russia but inadvertently punishes consumers.
Since gasoline prices usually follow crude-oil prices we’re feeling the effect of high oil prices the most at the gas pump. Gasoline prices reached a nationwide average record high of $4.33 on March 11, 2022, compared to $2.98 in March of 2021, according to AAA. My family and I saw gasoline prices in Spain last week at $7.20 a gallon. More than two-thirds of Americans surveyed by consumer-tracker Piplsay said in a report last week that they are nervous about rising fuel prices according to the Wall Street Journal.
Things might get worse before they get better. As the summer vacation driving season nears, we need to plan for our road trips to cost more than they have in years if oil prices stay this high. Simply put, the more the demand, the less the supply, the higher the price.
My old Chevy Monte Carlo continued to leak so much that I eventually had to switch to thicker weight oil so I wouldn’t have to put oil in it every time I filled up with gas. That was a short-term fix, I’m hoping there’s a long-term fix coming soon for oil and gas prices.
I’m still praying for the people of Ukraine.
Have a blessed week!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.