If you are like most, then you’ve been wondering just what’s happening with the price of oil, and whether it is reaching the bottom. While it is still quite early to tell, there does seem to be at least a small bit of good news on the horizon. The price of oil rose in early February, and that boosted the price of gas and oil shares. This increase is causing many to speculate about whether the market has hit bottom and is starting to rebound.
The oil company Brent, which has been suffering in these recent months, was actually able to post their largest gain in a single day in six years on Friday, January 30. These are not the only ones who are seeing something of a turnaround in recent days. Shares in FTSE 100 oil stocks for BG Group, Shell, and more have also risen in recent days, all in the hope that recovery is just around the corner.
One of the other changes in the economy is the fact that the consumption of gas in the United States has actually been on the rise over the past few weeks. This means that the lower prices are starting to get more people out and driving, and that can eventually help to balance the supply and demand. It makes sense for people to take advantage of the lower prices, as it is something they haven’t seen in years.
What Does This Mean?
While it is still early, it does seem to bear some rather good news. There is more hope on the horizon today than there has been in past months. Even the secretary general of OPEC said that prices had hit a bottom and would be rebounding soon. Experts also see that many more investors are starting to look into the industry again. This is good news for companies of all sizes, but it should be especially encouraging for the small to mid-sized businesses out there.
Of course, it is also very important to remember to temper the excitement as much as possible. Just because there have been a few good days and some positive signs for the industry, it does not mean that things are out of the woods yet. Many still feel that OPEC could turn things around if they changed and lowered their production target, but that’s likely not going to happen. Right now, it’s important to consider things one day at a time.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughneck Repair and Upgrades and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.