Over the last few weeks, crude oil prices gushed from a low of about $65 to $130.50. All thanks to Russia’s invasion of Ukraine.
While oil has since corrected to $97, the pullback may only be temporary. That could happen for a few reasons.
One, according to Tom Kloza, global head of energy analysis at the Oil Price Information Analysis, as noted by CNN, prices could rise again this spring and summer, as demand recovers, with the national average climbing to around $4.50 a gallon.
Two, no one is quite sure when Russia will leave Ukraine.
Three, there’s still a significant supply-demand imbalance with oil.
That being said, oil prices could remain elevated for the foreseeable future, which could boost earnings for companies such as InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF), NuVista Energy Ltd. (TSX: NVA) (OTC: NUVSF), Oasis Petroleum Inc. (NASDAQ: OAS), Exxon Mobil Corp. (NYSE: XOM), and Chevron Corporation (NYSE: CVX).