On July 7, in a Barchart article on the quarterly action in the energy sector, I outlined the four reasons to “expect higher energy prices in the second half of 2023.” The four factors supporting rising oil prices were:
- Crude oil continues to power the world. China and India, the world’s most populous countries, are less concerned about climate change than the U.S. and Europe.
- OPEC+’s mission is higher petroleum prices, and the cartel’s output is the critical supply factor.
- The U.S. SPR is at a four-decade low, and the Biden administration has missed many opportunities to purchase oil at its $67-$72 per barrel target.
- China and other BRICs countries have begun pricing crude oil in non-dollar assets, which could lift the energy commodity’s dollar price.
