The summer driving season may just have gotten more expensive.
US and global crude oil prices are near six-month highs as the White House said Monday it would not extend exemptions to Iran’s oil sanctions that were set to end in May. The news triggered an immediate spike in oil prices and comes as gasoline demand seasonally rises as Americans prepare for summer road trips.
Beth Mosher, spokeswoman for AAA, which tracks gasoline prices, said based on the Iranian news, AAA forecasts nationwide gasoline prices to rise over $3 a gallon this summer. That’s 15 cents a gallon more than current prices and above last summer’s prices, she said.
Reabold Resources (LON:RBD) invests in operating companies whose main value driver is the oil & gas asset of interest. Reabold can thereby run a low-cost, non-operator business model where the monetisation versus the entry price of the oil & gas projects it invests in will be the key determinant of value. Monetisation of investments depends on the extent of any success and market conditions. These include an asset sale, IPO or putting the asset into production.