Even if crude oil prices fell on Friday, an oil specialist predicts that the future of energy expenses may be different.
According to Tom Kloza, Global Head of Energy Analysis, the energy shift will continue into the next quarter, according to Yahoo Finance "That will really be the beginning of the next few years of suffering."
Oil and other energy prices are at historically high levels as a result of Russia's invasion of Ukraine because Europe is compelled to stop its reliance on Russian natural gas.
Kloza stated that Russia cutting off the supply of crude oil and processed goods is "still very, very much a threat" after Russian President Vladimir Putin called for a partial military mobilisation earlier this week.
Oil prices plummeted to an eight-month low on Friday as Brent (BZ=F) and West Texas Intermediate (CL=F) crude futures both lost 5% to trade just around $85 per barrel.
However, the analyst noted that in 2023 "we will see what I term 'petronoia' — the anxiety that there will not be enough petroleum molecules to go around, particularly in the gasoline season. It will eventually manifest, and then we might make another move.
The price of fuel, he continued, "is not going to be substantially more expensive than what we witnessed in the summer of 2022. However, I do think there is a bias in favour of higher rather than lower energy prices.
Additionally, a hard winter may have an impact on supplies given the high demand at the moment for some refined U.S. products.