Over the past few months, the pandemic has had a profound impact on almost every aspect of the U.S. and Texas economies. Added to that, huge drops in the oil market have devastated Texas’ most lucrative export industry.
But Matt Smith, director of commodity research at ClipperData, told Texas Standard host David Brown that oil and gas producers might get some relief as states reopen and people return to work. He said oil prices are slowly starting to climb.
“As oil has rallied in the last month or so … oil prices are dragging gasoline prices higher, even though demand hasn’t necessarily done that ‘V’ rebound by any means,” Smith said.
Oil prices will likely continue to climb along with consumer demand, and also if OPEC continues to limit oil production. Earlier this year, OPEC member country Saudi Arabia flooded the market, which contributed to the steep drop in oil prices.
But Smith warned that stability in the oil and gas market is still tenuous, especially as Latin America faces its worst phase so far of the COVID-19 pandemic.
What you’ll hear in this segment:
– Why Latin America matters to U.S. oil and gas producers
– Whether summer travel could bolster the energy sector
– How the rise in telecommuting could have long-term effects on oil and gas production
Web story by Caroline Covington.
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