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Summer Driving Season Easy on the Wallet

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    Richard Soultanian of NUS Consulting on the current trend in oil and gas prices.

  • Duration 4:10
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One of the good items of news over the past several weeks has been the decline in the price of oil.

And that fall the price of gasoline look at apprised and that's it shocks for oil prices just over in the -- that -- would drop off.

Well -- obviously -- -- know where is oil going from here because that would dictate the price of gasoline from India.

Joining the company is our own energy watcher -- -- opinion Richard welcome back thank you very much for having me I want to forecast for -- first of all the price of oil 83 dollars a barrel now it's come down sharply -- -- for the rest of the summer.

I think is gonna continue to pull back with one -- via.

I think what happens with Iran we'll have a big impact that they look at the fundamentals.

The fundamentals.

Our you know for pricing -- is very weak stockpiles that are I took a multi decade high were 384 billion barrels in stock.

Saudi Arabia continues to pump -- where stockpiles are bursting right now.

The US today.

They just came out the CIA.

We produced more oil domestically than we have in the first quarter that we haven't fourteen years OK so absent Iran and because we have no clue to what will happen in Iran but just take that off the table -- second.

If -- looking strictly supply and demand absent any mideast crisis you're saying that oil goes down below eighty dollars a barrel oh absolutely I think at my forecast is that we continue to see trouble in the EU which I think we will mean -- Spanish there's is -- patch.

I think we're gonna pull back between.

Somewhere on the high sixties low seventy so what happens if there is another round of money printing from the Fed doesn't that increase or commodities including oil actually think that you know I look at -- -- is for real issues driving or drivers of the market.

Fundamentals put aside because they really haven't been -- a fact of the market for a while.

You've got the EU crisis which we said in February if it boils up will drive the prices of of energy down because.

Demand has been down for for a year plus.

You've got money printing which is gonna be connected to the U crisis at the U crisis gets worse they'll be more pressure on the Fed and other Federal Reserve banks to print more.

-- the problem is we are already awash in liquidity so I think that that gave me at been played and it's kind of like that at dose of sugar today to the children.

You -- -- sugar the first couple doses are real hard but -- -- -- gonna have your opinion.

-- after dole caveats that I don't think that we gonna -- -- -- dollars a barrel for oil in the next few weeks following.

I think so because I think -- aka doctor but look at the ability following your opinion and you said it -- -- -- -- that's where we -- we're going on -- caveat psychotic but senate on boxes that's that's what you think will go yeah I think we're right at the sudden now the price of gasoline 3:54 as of this morning -- long way down from like march.

And you got it right fair -- you got the prediction right.

Give me another prediction what are we -- the -- to some.

We're gonna drift down I don't think what we've seen in oil has been pretty significant drop has been very fast the we're coming down for gasoline look from where we on now -- we went up to 390 we came down -- 354 I think we're gonna pull back another.

1520 cents but we're not we're seeing the pullback in gasoline is much shallower than what we're seeing in the pullback for crude because the refinery problems and moving around crude inside the -- that we've got a new normal for -- -- about people on -- company's established that that idea a new normal for gasoline which is around it.

350 a gallon.

You know look -- this this concept and I heard you earlier in the show saying it's not so bad we've pulled back.

I look at this is like -- -- the fraud you turn up the heat a lot we got close to four dollars people screen.

Animals and we've come back fifty cents -- people are saying -- they got more money.

-- -- -- Very expensive historically and in relations what we're accustomed to paying for -- as Americans -- you know people up here SUV to that meets the -- dollars the -- Election Day when the price against me.

Again with obvious to me I think what -- opinion yet but let me let me just put a target -- percent and it's important -- I believe that the probability of Israel striking Iran has grown significantly we've had two rounds of talks.

You know one in Baghdad one Istanbul they've resulted in nothing funny thing is.

For five months ago we heard a lot about a preemptive attack.

Patent and RY know Iran attacked -- have a price action that I will -- -- though I'm saying about somewhere between 32335.

-- like that still expensive.

But down significantly -- becomes less of an election issue Richard sultan and thank you very much your opinions unvarnished information that there's been much next.

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