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Have Gas Prices Peaked?

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  • Description

    Clearview Energy Partners managing director Kevin Book on what's driving gas prices.

  • Duration 2:48
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Our we'll gas prices continue to climb across the country at thirty cents a gallon from last hunt that's quick.

Here to tell us what's driving gas higher and how we can put on the breaks Kevin book a clear view energy partners -- great to have you first let me get your take on how high.

National average gas prices could go in this run.

Well the same problems we had before still there -- -- -- drivers of today's cars are on yesterday's savings out running out really.

It's not as though they're gonna be very resilient at a high price environment probably nearing the peak but we're also -- the peak because crude.

If that matter gasoline demand are both likely to reverse in the near term.

Our gas is gas prices higher though because of that refinery cal fire in California the pipeline issue in the midwest all these kind of -- anomalies that things that don't happen seasonally.

-- -- destruction -- -- are are clearly a problem in California destruction skew the national average because California's 50% of national gasoline.

-- so yes absolutely those prices are because of unusual events in the refining and marketing segment.

But crude prices explain an awful lot about the uptick in the in the recent months -- said it when you -- -- gas prices currently fair and -- -- -- -- or you know as this fat for unnecessary speculation -- don't -- is is whatever the consumer thinks they can bear.

The the consumer can't bear a lot so nothing seems fair right now.

But what happens -- that we internalize risk if you look at the political response -- look the economic response over time this won't seem like a big deal.

So will gas prices then -- after Labor Day for coming into these -- peak driving days here as we cruise into the end of the summer.

Yet we're going into shoulder season after Labor Day -- should see a fall in demand -- organically because it happens for seasonal reasons but also -- Iraq on September 16.

We're either going to have sort of -- shove -- nothing happens on Iran.

Our view this probably more likely to be the second rather than the first.

A lot of the oil that couldn't get to market because of -- -- tankers.

Or rather western tankers not be able to ship it.

Is now going to be reassured by sovereigns in Japan Indian and China.

That's gonna leak into the world market will probably weaken prices you know wanna go back to send -- hit on before about how consumers feel we just don't eat -- -- sentiment is so important it is this kind of a new normal with gas prices 3637.

Even as we passed that shoulder season.

It certainly used to these elevated prices.

As -- -- looks like we're getting used to -- and sort of the worst way we're doing less with less we get down to what's happened here you haven't changed vehicle stock a lot we have some efficiency gains.

But not heck of a lot to big fleet takes a long time to switch out new cars so what you end up with is a lot of people who found new ways to adapt behavioral.

Doesn't either happy about it and it certainly -- are sensitive to people who are on message politically talking about it we have politics to can't forget that angle Kevin book thanks there.

Thanks for having me.

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