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Lipow: Could See $85 Oil Prices

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    Lipow Oil Associates president Andy Lipow gives his outlook for crude oil and gas prices.

  • Duration 4:24
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Weekend YouTube and it's gonna feel good if -- draw a drive and well in most states in this country because relief.

At the gas pump continues to show up now the national average topped out at three dollars and ninety cents in early April.

Right now according to AAA the national average for regular is three dollars and 66 cents a gallon weak demand slumping oil.

-- -- prices and plenty of inventory.

Could push prices even lower you can take a look at the national average today but unfortunately the relief -- -- being spread to California.

Again California this weekend the average price right now is four dollars and thirty says that will be a record.

For Memorial Day weekend problems unique to California but.

For more on the pressures.

That we're feeling on gas prices and you live Alistair -- -- without.

Well associates Andy and do you expect it -- -- at the price of -- you expected to keep falling from here.

Well I think the only thing that's holding up crude prices is the geopolitical.

Uncertainty with Iran otherwise on -- -- that we could see 85 dollar oil.

Just say five dollars look at Dow thank you within -- -- -- global economy looks right now you have -- new worries servicing and China.

Europe some massive Wear and all right it could go even lower than any five assuming that -- this situation with maybe Iran gets resolved in a positive way.

Well that's definitely a possibility I think what would put floor under the prices as the prices decline you would see relief from the consumers.

And the demand which is still growing worldwide would -- stabilize and that would provide optimism.

For the economies around the world.

I was talking about California and the gas prices their four dollars and thirty cents.

Is the average in the state GXED think that those prices will ease -- you have some of the refineries coming back online.

Well absolutely and I think they can come off quite a bit thirty to forty cents a gallon.

The fact is that on the West Coast inventories are at the second lowest level in twenty years.

And really a lot of people in the industry had just keeping their fingers crossed that we don't have a refinery problem over the next week or two.

Which adds to it -- supply situation.

At 366.

Nationwide how low do you think our gasoline prices can go.

Well I'm seeing at least three and a half dollars a gallon nationwide.

Now by perhaps even the end of June and lower as we go into the fall.

That's part that's pretty incredible but the situation with.

Iran again those talks in Baghdad.

Not end it it the least early indications look like you would if they would and positively yet the EU -- those sanctions that are coming up in July.

Do you think that you we do get a spike may be back -- hundred dollars a barrel just on increased worries.

About that -- that country's nuclear ambitions.

Well I'm not really expecting to see a hundred dollars unless we see all of the Iranian oil taken off the market and the inability for the rest of the world to make up the -- -- And part of that difference may be in a release of strategic -- stocks around the world.

Right now the market is seeing that the EU sanctions are gonna come into force on July 1.

But I think they're encouraged at least that Iran continues to talk.

With the this map of the permanent members of the Security Council.

But on the flip side is we're really not seeing progress and that is cause and some market worried -- On that note I did that this is a headline that just cross and -- That the IAEA.

The international atomic energy agency found traces of 20% plus enriched uranium.

At one -- -- and site.

And -- -- is -- this kind of saying that again if we wanna take a look at the price of crude oil right now -- really will keep it keep that that floor.

Under created.

Well I think that's exactly right because you -- those type of headlines and you worry.

What else is going on in Iran that the inspectors are not seeing in whether the -- -- unions are just.

Moving there -- nuclear program from one site to another that we won't have access to.

It was great to see and they have a great Memorial Day right again Andy let out of our oil says yeah.

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