A drop in the supply of oil from the North Sea and the explosion at a Chevron Corp. (NYSE: CVX) refinery in California show just how fragile the crude supply chain is. Each incident pushed oil prices higher, at least for a short time. The refinery accident caused gasoline prices to spike several cents throughout much of the western part of the United States.
The two problems are part of a much longer list of factors that could push Brent back toward $110 or $120. Among them still are trouble in the Strait of Hormuz due to sanctions placed on Iran, an unexpected result in the Venezuela presidential election or an unexpected rise in Chinese demand. The notion that oil prices will remain low could be nothing more than a wish.
Douglas A. McIntyre
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
