Oil Prices See Summer Spike

Throughout the first half of 2023, the U.S. experienced dropping oil prices resulting in lower costs for gasoline and other consumer products. Unfortunately, over the past month, oil prices have begun to rise again which could become problematic for consumers.

Oil prices are up by 18% over the past month resulting in higher costs for shipping, and manufacturing. These costs will inevitably be transferred to the consumer, and it is likely that consumers will see a spike in costs in just about every area of the economy ranging from food, gas, and other household items.

The rise in oil prices that the U.S. experienced last year was largely due to the Russian invasion of Ukraine but since then oil prices have mostly stabilized. The most recent spike is the result of Saudi Arabia and Russia making the decision to limit production to cut supply to the market. The result is a 36% increase in diesel prices, 40% in jet fuel, and 19% in gasoline.

Source: Financial Times