Even $100 Oil Isn’t Tempting Energy-Focused Private Equity Fund
Despite the highest oil prices in nearly eight years, investors in the secondary market haven’t yet shown an increased appetite for buying interests in energy-focused private equity funds. ESG concerns and the volatile nature of energy prices, especially in the past two years, have had secondary firms hold off on buying oil and gas assets despite the tight global energy market and a recent surge in oil and gas prices, with crude holding at over $100 per barrel for most of the past two months.
Crude oil prices are sinking. So why are gas prices still high?
The price of crude oil has dropped significantly compared to a month ago, but drivers in the U.S. are still experiencing sticker shock at the gas pump. Crude oil is down more than $20 a barrel, or a decline of almost 20%, from its March peak. But gas prices remain elevated, costing an average of $4.11 a gallon at stations across the U.S., according to GasBuddy, a service that tracks fuel prices. That means prices at the pump have dipped about 5% during the same time. “It does seem weird, but it’s something that economists do expect and have studied for a long time,” said Ben Storrow, a reporter for E&E News, a news outlet that covers energy.
Ask a Travel Nerd: What Do Oil Prices Mean for My Summer Travel?
When I originally pitched the idea for this article, it was titled, “What $100 oil could mean for your summer travel.” Back then, $100 oil seemed like a distant possibility. Then prices spiked to over $120 before settling back down to a mere $100. By the time you read this … who knows. The point is, nobody can predict what will happen to oil next, yet everybody is curious how it will impact long-delayed summer travel plans. Does it make sense to book flights sooner or later? Is it better to drive or fly? And does anybody remember how to siphon gas (asking for a friend)?
Russia cuts natural gas to 2 NATO nations in escalation
Russia cut off natural gas to NATO members Poland and Bulgaria on Wednesday and threatened to do the same to other countries, dramatically escalating its standoff with the West over the war in Ukraine. European leaders decried the move as “blackmail.” A day after the U.S. and other Western allies vowed to speed more and heavier weapons to Ukraine, the Kremlin used its most essential export as leverage against two of Kyiv’s staunch backers. Gas prices in Europe shot up on the news.