The Oil Prices Are Climbing and a Rebound Is Near - What Does the Future Hold
Change is in the area and it reeks of oil and money. If you have been keeping up with the markets, you’ll know that they’ve been incredibly volatile. So many variables have taken a toll on the outlooks for investors, but one might be able to give them a little bit of hope. Oil prices have continued to climb and this will undoubtedly strike interest in oil-minded investors. If you’ve been contemplating an investment in an oil company, you may want to act on your assumption right now. After a handful of gas companies have filed for bankruptcy, others may finally be able to breathe a sigh of relief.
First and foremost, Canada’s raging wildfire has undoubtedly hit some Canadian oil producers. The fire is currently burning in an area, which is believed to be rich in oil sands and this will likely lead to a substantial decrease in production. The combination has already resulted in noticeably increasing prices of gasoline for consumers. Recently, the price of gasoline was down to nearly $1.50 per gallon. Consumers are now paying as much as $2.45 per gallon in some Florida cities. The fire isn’t the only indicator that gas prices will continue to climb.
Still, there are a few oil companies, which have managed to withstand the downturn, according to Sand Storm Holdings who knows all about these companies. Remember that some oil companies will emerge from the chaos and they’ll likely benefit in the future, due to the departure of recent rivals. Suffice to say, now might be a better time than ever to invest.
According to AAA, the prices of oil will most likely continue to climb. Since earlier this year, most consumers have been hit with an increased price of $.15 and some have seen even more dramatic hikes. The company, which analyzes travel, vehicles, and gas, expects oil prices to climb to 2016 highs within the coming days. They cite a number of reasons for the prediction, including the current political chaos in Venezuela. The violence in Nigeria is also believed to play a major role in the turnaround.
Those that want to travel should do so immediately, so they can take advantage of the low gas prices, while they remain low. Unfortunately, oil companies are not out of the woods yet. In fact, a few companies have been forced to file for bankruptcy and it is likely that a few additional filings will be announced in the coming weeks. The Oklahoma City oil company, SandRidge Energy (SDOCQ), just filed for bankruptcy protection. According to recent news, approximately 175 oil producers are in jeopardy and could be forced to file for bankruptcy within the year.
160 other companies are currently hanging on with their last finger. For companies, such as Linn Energy, Penn Virginia, and Breitburn Energy Partners, the revival has arrived a little too late. This year alone, oil companies have already defaulted on twenty-six billion dollars. That figure greatly surpasses the 2015 figure of seventy and a half billion.