West Texas Intermediate crude prices topped $70.91 on Friday, a weekly gain of 11.5% and the highest level since October 2018, as tracked by Dow Jones Market Data Group. For the year, crude is up over 46%.
|USO||UNITED STATES OIL FUND L.P.||69.52||-1.41||-1.99%|
"The commodity strength has been one of the stories of the recovery," Baird Investment Strategy Analyst Ross Mayfield told FOX Business, adding the run is not over.
"I do think oil continues to head higher, continues to look strong on reopening demand so anything highly linked, highly correlated, with oil price, should be a winner" he noted.
|XLE||ENERGY SELECT SECTOR SPDR ETF||91.25||-1.84||-1.98%|
A rise in consumer prices, including energy, has sparked a debate over how hot inflation may get in the coming months.
The Consumer Price Index for May, reported on Thursday, jumped 5%, the biggest gain since 2018, as reported by the U.S. Bureau of Labor Statistics.
While energy prices were unchanged from April, the 12-month rise hit 28% through May.
And drivers are paying for it at the pump. The national average for gas is over $3.00 per gallon, according to the American Automobile Association (AAA).
Ohio, Colorado, Tennessee, Virginia and Hawaii have seen the largest price uptick in the past week.
Next Wednesday, the Federal Reserve will announce its decision on interest rates following its two-day policy meeting and are expected to give us a fresh update on inflationary levels and projections.