Over the past few months, we saw the insane prices of gas going up further and further. And although many people want to blame the government for the increased prices, the problem is a lot bigger than the government. Even the gas prices in Canada were hitting record-high numbers. Just last week we discussed how companies are not in a rush to mine oil because they know that less product means higher prices, and in turn better rewards to their investors and buy shareholder buybacks. This way, they are making way more money than they were before the pandemic. In fact, during the first three months of 2022, the top oil companies Shell, ExxonMobil, BP, Chevron, and ConocoPhillips, brought in more than 300% more than in the first quarter of 2021.
Even with this trend in mind, the truth of the matter is that the last few days have been good for gas prices. Indeed, prices are below $4 for the first time since March. Unfortunately, the market remains precarious, and experts say it’s too early to know if the move lower will hold. In comparison to June, when prices were topping $5, the current price is a whole dollar less. It’s hard to say what will happen next with the future of gas prices, but what do you think?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.