With global economies increasing, the price of oil has been steadily on the rise for the past few years. As a result of this, demand for oil has continued to skyrocket while supply averages remain fairly consistent. In a recent report posted on the popular Godzilla Newz site, the monthly chart points indicate that prices are set to rise further in the near future.
This news is certainly a positive for the energy sector, touting potential signs that the industry may be on the upswing. According to the report, there are a number of factors that can contribute to higher oil prices such as political instability, currency fluctuations, inventory losses, as well as supply and demand trends.
Political instability can have a significant impact on oil prices due to its influence on the flow of petroleum and other energy-related products. In the Middle East, where oil production is a major source of income, any political unrest can cause professionals to become unwilling to invest in the region.
Another key factor is currency fluctuation. If one country’s currency drops, oil prices can rise due to more expensive imports or faster exports. Inventory losses are another common observation that can cause surges in oil prices. As supply contracts and demand increases, the cost of oil naturally rises.
The report also pointed to the demand for oil as an indication that prices could be further increasing. With economic growth worldwide, demand for oil has skyrocketed and as a result, supply has struggled to keep up. This could contribute to potential price spikes in the near future.
Overall, the monthly chart points to much higher oil prices coming in the near future. With the combination of political unrest, currency fluctuation, inventory losses, and increased demand, the energy sector could be on its way to higher returns. Investors who are willing to accept the risk involved in the volatile energy sector could see fiscal gains come their way in the coming months.