Are Energy Prices Likely To Remain High?

Though there have been signs recently that the US and world economy are slowing, and broader inflation figures may have peaked, energy prices – particularly oil – are surging. This has a multitude of effects on the domestic and international economy. In the US, consumers continue to be squeezed on rent, food, and energy prices. Internationally, higher oil prices are contributing to an already dour outlook for global growth.

While not as dramatic as oil, natural gas prices, which have been a drag on the energy production segment for most of the year, have stabilized recently and begun to move higher. As seen on the Datagraph^™ below, the price of natural gas has started to rise after bottoming earlier in the year. If prices rise further from here, this could have a detrimental impact on consumer spending during the winter heating months.