After a rally to start the year, oil prices have leveled off, trading around $52-$55 per barrel.
Patrick DeHaan with GasBuddy says oil prices moved higher between November and early January, but over the past couple of weeks have been in a holding pattern as investors wait for the next step. “Markets have recovered, and a little unrestrained exuberance, if you will, oil prices have gone up nearly $15 a barrel since November, whereas demand has gone up marginally [in that time]. So, I think we’re kind of waiting to see if the rally in oil prices is justified by hard data,” according to DeHaan.
DeHaan noted there are encouraging signs in the United States with more and more states opening up, and vaccination events being well attended. However, there is some concern with the new variant of COVID-19, and additional lockdowns taking place in China.
In the past week, the national average for a gallon of diesel increased one cent to $2.63