Oil Prices Rise the First Week of 2021

January 8, 2021

Last year hit the oil industry – as well as virtually every other sector – hard. In fact, for the first time in history, the price of oil fell into negative territory for a period of time. But there are high hopes for the industry going into 2021. Even now, just one week into the new year, we have some positive news.

Houston Public Media reports the following.

Texas oil producers spent much of 2020 hoping to see oil hit $40 as the industry struggled through a historic downturn. But one week into 2021 and West Texas Crude has bounced back to $50 per barrel.

The rise in oil prices is largely due to the two Covid-19 vaccines becoming more available to the public. It was also announce earlier this week that Saudi Arabia will be making voluntary cuts to its oil output. 

But the oil industry is far from out of the woods. The rise of barrel prices this week may not last too long, with the potential of more Covid-19-related lockdowns on the horizon. The importance of a functioning oil industry, and the necessity of reliable energy around the country, needs to be in mind when these lockdowns are considered.  

Hopefully, when Biden is sworn into office in less than two weeks, he remembers not only the functionality of the industry, but also the tens of millions of Americans whose jobs depend on it. For America’s businesses and economy to continue their recovery, the oil industry must be supported – not torn down. Hopefully this week’s rise in barrel prices is a sign that the oil industry is not only making a comeback, but that it’s here to stay.