We will be watching the oil markets this week to see if we have a rally like last week. Gas prices surged to brand new highs, shattering $4 per gallon, and diesel well above $5. Some analysts fear prices could eventually get too high for consumers.
A risk manager for Growmark says demand supports diesel prices, but inventories are at their lowest level in two years. He says fear is a big factor in driving the markets.
“There’s easily $30 of geo-political risk in the crude market right now. So, I mean with what’s going on with supply and demand, you could see stuff easily around $90-130 of crude levels - a lot of that is driven by concern and what’s going on over there in Europe.”
Scott Wilson wonders how consumers will respond in the coming weeks. He says they are finally able to travel again after dealing with the pandemic and now facing $5 per gallon gas.
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