Oil prices climbing back up

BISMARCK, N.D. (KFYR) – Oil prices are climbing back up after a sharp drop on Friday. This, after President Donald Trump returned to the White House. Many have hoped a new stimulus deal will be agreed to by both Republicans and Democrats.

Oil prices have risen around 5%. Experts say Congress has played a part in the higher prices. Market experts say optimism that the pandemic is closer to the end than the beginning is a driving force in the rising prices.

Energy markets have been hit hard since the pandemic began with less need for fuel and oil. David Wald with Securian Financial Services says the potential for a new stimulus deal has positively influenced oil prices because the talks increase expectations for greater fuel demand going forward.

“If we get the right stimulus and we put that stimulus to work inside of these infrastructure projects, we will have a much greater need for fuel, which will drive up the price because the demand will also get driven up,” Wald said.

Wald says fuel demand is still not where it would be if we had a fully open economy, not just in the U.S. but in the entire world. He says oil prices will likely not make any strong moves in either direction until demand has resumed to prepandemic levels.

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