Oil prices level off after a robust start to the year
After a rally to start the year, oil prices have leveled off, trading around $55 dollars a barrel.
It is good news for an industry that saw demand decimated during the pandemic, which had a trickle-down impact on corn producers.
Oil prices moved higher between November and January, but over the past couple of weeks, it has been in a holding pattern as investors wait for the next step.
According to Patrick Dehaan with GasBuddy, “Markets have recovered, and a little unrestrained exuberance, if you will, oil prices have gone up nearly $15 dollars a barrel since November, whereas demand has gone up marginally in that time. So, I think we’re kind of waiting to see if the rally in oil prices is justified by hard data.”
He says that there are encouraging signs in the U.S. More states are opening up and people are getting the COVID vaccine, but there is some concern with the new strains and additional lockdowns in China.