When the Coivd-19 Pandemic began, the oil and gas industry went into the tank as demand for oil came to an abrupt halt. Around the world, air travel and domestic passenger vehicle travel were essentially non-existent when governments around the world implemented travel restrictions and lock-downs to slow the spread of the virus. Once stay-at-home orders were lifted, demand began to creep higher for oil, but since the airline industries consume a large percentage of global oil demand, for the bulk of 2020, oil prices and demand were still well off their normal levels.
As we moved further into the pandemic and passenger vehicle travel began to increase, airline and even the cruise line industry came back online, demand for gasoline quickly rose. At the start of 2022, demand was once again strong, and as the Omicron variant peeked in January, oil began flirting with $100 a barrel oil prices in the US, a level not seen since 2014.
Just a month or so later, the oil industry seems to be going through another significant change due to the Russian-Ukraine situation. Due to Russia being one of the largest oil and gas producers globally and countries around the world implementing sanctions against Russia, supply for the commodity appears to be a significant issue moving forward.
Most of Europe relies on imported Russian oil and gas. However, the longer the war in Ukraine continues, there is ever-increasing likelihood that Russian oil and gas may not Continue reading "Oil And Gas ETFs Are Headed Higher"