Charles Reed Cagle Explains Why Post-COVID Oil Prices Are Back Up
A Good Sign For The U.S. Economy: Oil Prices Are On The Rise, According To Charles Reed Cagle
COVID-19 struck fear into the hearts of Americans for many reasons: everything from public health to the economy hung in a delicate balance. Now, the vaccine has arrived, and the economy is making a swift recovery as well, according to Charles Cagle.
Oil Prices And The Economy
According to Charles Reed Cagle, climbing oil prices are a sign that the American economy is getting back on track.
Over the course of the pandemic, the demand for oil took a sharp decrease, partially due to Americans traveling less than they normally do, says Charles Reed Cagle.
While travel isn’t the only thing that affects the price of oil, it’s one of the largest determining factors. When Americans are traveling more, it’s a sign that business (and the economy) is thriving. The average American has enough money to travel, and businesses are willing to spend their money on faraway meetings and business trips.
There are other factors that impact the price of oil, according to Charles Reed . Both population growth and seasonal changes can weigh heavily on how much the price of the standard oil barrel increases or decreases. These factors, however, go through normal and predictable fluctuations over time.
Why Post-Pandemic Oil Prices Are Soaring
The development of the COVID-19 vaccine means that both people and businesses are feeling more comfortable with travel, leading to an increased demand for oil, according to Charles Reed Cagle. Increased demand means that oil companies are able to charge more money per barrel, signaling that the economy is on the mend.
An increase in travel around the country isn’t the only reason that oil prices are on the rise, however. Some countries — such as Saudi Arabia — are working to take advantage of the situation by limiting their output of oil. This allows these countries to charge more per barrel.
Moving Forward Post-COVID: Charles Reed Cagle Explains What To Expect
While airline travel is still struggling to make up for COVID losses, Charles Reed Cagle states that it’s likely to pick back up as restrictions continue to ease. Other types of business travel — including delivery services, truck shipping, and air shipping — are continuing to thrive. Charles Reed Cagle believes that the pandemic helped many consumers (and businesses) see the benefits of direct-to-consumer shipping services, and it’s likely that delivery and shipping-based businesses will continue to thrive.