SPRINGFIELD, Mass. (WWLP) – You may be paying more for oil and gas this winter. At least that’s what some financial experts have to say.
Oil prices jumped two percent on Tuesday, with U.S. crude hitting its highest since 2014. Overall demand for fuel has rebounded to pre-pandemic levels.
Financial expert Mark Teed of Raymond James said we are seeing gas and oil shortages, especially the oil that gets delivered to our homes. That has pushed prices even higher. In fact, oil prices have already surged more than 50 percent this year.
Teed told 22News, “When oil production dropped last year due to lack of demand for oil and natural gas, the refineries shutdown a little bit. And then when demand picked up by the end of last summer the refineries were not ready for the increase in demand. At the same time, the world was coming out of COVID so we have been playing catchup.”
Teed said last June, oil was $24 a barrel. Tuesday, it’s about $79 a barrel. That’s about triple from what prices were last year. The price of crude makes up roughly half the cost of gasoline at the pump in the U.S.
Gas prices are also expected to remain high. The average price of gas is 97 cents more than a year ago.