Fox Business
Expand
Browse All Video
Watch Live

You're watching...

What Happened to $5 Gas?

Details

  • Description

    OPIS chief oil analyst Tom Kloza gives his outlook for gas prices.

  • Duration 3:21
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

-- so today's the official start of summer but will be the end -- five dollar a gallon gas -- the national average for retail unleaded stands below three dollars and fifty cents a gallon in fact.

-- two states are paying more than four bucks at the pump that's Hawaii and Alaska.

So how low can prices go -- -- that he's chief oil analyst at -- Tom thank you so much for joining us let's get right to know what's your prediction for the summer.

I think in this summertime we'll see prices probably between 345 and where we are now I mean the average price -- the most common prices at about three -- not right now so.

When you get rid of those -- numbers from some of the coast certain host Tony little communities.

It's not that that it's much better than last year but.

Probably about fifty or sixty cents higher at the 2010.

-- it is surprising when we look at the numbers I mean I think we have a graphic that shows this regular right now the average is about three dollars and 48 cents vs a year ago was three dollars and 64 cents.

And I'm wondering you know as consumers look at this and they see how much it's dropped and and they think back to the spring when we were telling them.

That gas prices were the highest they had ever been for that time of year.

How much has changed and and you know makes the average person just sort of suspicious about what's going on in oil markets.

Well I think -- always suspicious because -- so many it.

Created TV programs have portrayed oil executives like -- -- you're kind of split.

In some -- a lot of -- and not.

But I think five dollars and six dollars was always nonsense and I think it's nonsense for the next couple years.

There's a great story in terms of how much new crude -- comic to market in the United States and how we're gonna back out.

All of the light sweet crude imports -- out one thing about the markets today Melissa is the market is pricing in less than three dollar gallon gasoline at the pump.

By Thanksgiving Day that they may have overreacted or they may not -- it's interesting to see that.

-- more plainly how is it possible that we're seeing so much volatility inside this year alone.

Well I think we had a lot of the financial funds in the speculators embrace gasoline has embraced crude oil as a great great head should particularly -- -- -- respect noise.

I ran is a making a lot of noise now but.

I suspect that all of this will come too little bit of an end to stability at the end of June I think July and August are gonna be expect it you might see some up dwelling from the lows that we get to between now on the fourth.

To also a private -- what you just -- you blame the speculators.

I don't blame it might think that you can credit temper some of the cheaper prices now just like -- credit them for the cheaper natural gas prices.

I don't I don't speculate and and I think they provide liquidity but -- said before this market needs more liquidity like Charlie Sheen does.

It's like gasoline -- -- get from.

Like gasoline demand fell to its lowest level in eleven years for mid June is that part of it to drivers just -- -- there are many many.

-- that is part of it it's it's part of the unemployment story on now there is a school taught that maintains when prices get below 330 year 325 that people return some of the driving habits but -- -- -- -- standards coming down the line so.

It's going to be tough for gasoline demand to do anything on a year on year basis except he's a little bit.

-- closing you always give it to me straight thank you for coming -- I appreciate it.

Daycare and coming up tonight on.

Load More