The State of Oil and its Effect on the Roofing Industry

By Bud Polston, EVP sales and marketing, United Asphalts.

The continued strain on oil globally may impact pricing across the roofing industry as the year comes to a close.

As I travel across the country, I get asked a lot what I think is going to happen with oil prices. A few years ago, that question was much easier to answer. The past few years have been incredibly challenging with natural disasters, covid and supply chain issues. And as we look at the last quarter of 2023, I'm afraid the news does not look great.  

U.S. oil prices climbed above $90 a barrel this month for the first time since 2022 and many forecasts predict prices to exceed $100 in the coming months. The reasons for the recent increase are many, but all lead to price increases for petroleum-based products. 

From the additional Russia/Saudi Arabia production cuts to the strain created by increased natural disasters like the flooding in Libya, to the continuing war in Ukraine, the international pressures on oil continue. And here at home the Biden Administration's restriction on new fossil fuel leases have driven concerns about supply. 

While the International Energy Agency predicts that peak demand for oil and gas will occur within a few years, the infrastructure needed to switch to alternative energy sources is still being built. This means that the demand for gas is not going down drastically any time soon — and as with everything — short supply and high demand drives up prices.

Due to these concerns, the United Asphalts leadership team is in conversations about our need to increase prices moving forward.  

As a valued partner we want to keep you informed of the trends and in front of potential increases. Please take this opportunity to reach out to your local sales representative to confirm pricing for the remainder of the year, as increases appear likely in the coming months.