COVID-19 Vaccine News Has a Positive Impact on the Oil & Gas Industry
The price of oil keeps rising and the COVID-19 vaccine is helping it go up.
According to NewsWest 9, the pandemic has not been good on the oil and gas industry but that is all changing as oil prices continue to go up.
Oil is up over $45 a barrel which is good but it is not as good as it was pre-pandemic but with all that has occurred this year, economists are pleased with where everything is going currently.
"Today it’s around $45 per barrel, so we’ve had a nice recovery in the price itself. Hopefully, that will continue, OPEC will continue to restrict their supply and that will allow us to climb up hopefully into the mid-50s next year," said Mickey Cargile, president of Cargile Investment Management.
Don't expect the booming economy we had pre-pandemic, but things are getting better and OPEC continues to do what needs to be done to keep prices stabilized.
With news of a COVID-19 vaccine on the way, the price of oil is expected to make a slow steady climb upward.
"As we get the vaccine, economies return to normal, not just in the U.S. but worldwide. That will help prop up prices again and increase demand for energy," Cargile said.
When news first broke about the vaccine in November oil stocks were raised immediately.
"In the month of November, oil stocks were the top producing asset class in the stock market. So there was a lot of promise that came with that and now some higher expectations that there will be increased demand for energy," said Cargile.
So maybe if we can get past 2020, next year will be a much better year for everyone.