Oil prices hit seven-year highs on January 18 due to supply concerns and rising political tensions in Europe and the Middle East. With the world bracing for a potential Russian invasion of Ukraine, oil and gas prices could rise worldwide. This because Russia is the world’s second-largest oil exporter, while Ukraine acts as a key transit hub for crude oil and natural gas supply from Russia to Europe.
According to a recent Goldman Sachs report, oil prices could hit more than $100 per barrel in 2022 and increase further in 2023. Oil refiners are expected to benefit from higher crude oil prices pushing their profit margins up significantly. This optimistic sentiment is evident in the VanEck Vectors Oil Refiners ETF’s (CRAK) 11.3% returns over the past month.
