Fuel Prices Bottomed Out for the Year?
Oil prices started the new year moving up slightly, and there is an expectation that fuel prices will climb in the first half of 2023. Patrick De Haan with GasBuddy says it's been a bumpy start to the year…
“Oil prices still a bit lower than what they were a week ago, but oil prices in full rally mode with China giving us strong indication of a full reopening happening.”
De Haan says investors don’t know what to make of that opening. He says on one hand, it could drive up demand, pushing oil prices higher. But at the same time, De Haan says that opening could lead to additional COVID cases triggering additional lockdowns, stalling the Chinese economy.
Either way, as he looks to the months ahead, De Haan says he expects fuel prices to move higher…
“But I think, we may start going up from here on out. I think the national average may have already bottomed out for the year. And while I'm hopeful that prices won't at record levels in 2023 we still could see gas prices that do flirt with and potentially breach the $5 a gallon mark. Especially in areas of the west coast this spring.”
Of course there’s a lot of unknowns out there and, if the last two years have taught us anything, it’s to always be anticipating the unexpected. Again Patrick De Haan with GasBuddy.