The price of oil has rebounded to over 30 dollars a barrel Monday after sinking to negative numbers just a month ago.
LSU Center for Energy Studies Executive Director David Dismukes says Monday’s positive news involving vaccine development helped the short-term jump in the price but there appears to be more optimism in general about the world economy right now.
“A lot of it has to do with the reopening of economies both here in the United States and around the world, and the expectation that energy demand is going to be following that renewed economic activity,” says Dismukes.
Oil started the year over 60 dollars a barrel, and while that is unlikely to return this year Dismukes says the industry can sustain at these prices.
“Even though 37, 36 dollars is not great the market is starting to come into a clear focus and that focus is on a recovery track,” says Dismukes.
A Louisiana Oil and Gas Association survey indicated producers were bracing for massive layoffs, but Dismukes says if prices stay over 35 a barrel we should only lose 5,000 of the state’s 35,000 oil workers.
“We are going to still see some pain, it is not going away but it don’t know that we are going to lose the entire industry and the entire labor force,” says Dismukes.
Today’s prices in the low 30s represent a two month high for oil.
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