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Where Are Gas Prices Headed in the New Year?

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    OPIS Chief Oil Analyst Tom Kloza on the outlook for gas prices.

  • Duration 3:58
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Gas prices bottomed out the year at least about three dollars and 21 cents a gal -- roughly four days ago but have been edging higher since then.

Where they go from here and about 2013.

Here with more Tom close chief oil analyst for the Oil Price Information Service join us on the -- Tom can we hold steady here for the next several months many.

Yeah I think so I think restart the year with a little bit of a wobble higher.

It's so some parts of the country but I think that generally we should see lower peaks and maybe a little bit deeper rallies and 2013.

Got a lot of cheap crude in this country and a lot of it's going to be coming to market in 2013.

Talk about the different regions of the country particularly the West Coast which was hit with those.

Ridiculously hot prices earlier this year and then the north days particularly.

Around New York City area we have not seen the price -- other places in the nation half.

No we haven't there was a little bit of almost an embolism that occurred when the pipeline shut down and we didn't get the normal flow products from the Gulf Coast -- sandy a little bit from seismic to so.

Our prices here in the northeast are actually ten or fifteen cents above the lows for the year.

And I suspect that they continue for a little while.

On the West Coast we had a nice downtrend but today able days what a lot of people are even showing up and elected giants yesterday.

No we're seeing prices actually move higher California Texas refinery issues so.

That's going to be the hot market again in 2013.

You've got an adversarial relationship between refiners and regulators and that doesn't add up to anything good to.

There's someone very strange going on in terms of hold the wholesale markets for gasoline and export of gasoline can explain man.

Yeah I'm one of the reasons the East Coast has higher prices is that again there's plenty of Gulf Coast product is -- forceful.

And it actually cost fifteen to forty point five cents to get -- the ship bit from the Gulf Coast up to New York.

You could actually ship it overseas to West Africa or Europe for probably a fraction of that so even though the northeast is a little bit tight on gasoline it -- so much the -- the US flag vessels right now.

That's some of the -- believes that might ordinarily -- -- the parts of the country is going to places like Nigeria.

Asia Europe you name it and that's that's unusual and asked to do with shortage.

Of American flag vessel.

Surprise politicians are flapping their arms about that are flapping there gums but instead.

They're trying to deal with those -- tax increases and spending cuts if they don't get a deal done on that.

Will we see an impact and the crude and also the gasoline markets.

-- absolutely if if this fiscal cliff if we go off of that like lemmings I think will will see crude oil prices come down substantially.

My hunch is though this.

If we don't do -- -- for we have a short term fix.

They you'll feel lot of hot money come back into the market and park itself in commodities have been oil is always -- favorite so.

If you if you're rooting for the fiscal puts you might be rooting for lower gas prices -- pro group for lower unemployment.

You know lower income and a lot of -- things as well.

Tom if you're rooting for the giants high and I know as a rough day but this makes you feel any better.

If your jets -- they -- a whole lot worse.

-- give -- time to adopt the team that the governor go to practice this year.

No I'm not fall back I've always stayed students sort -- loyal to the Redskins in Savannah good years out.

I don't have to be ashamed I can just pull out a Redskins read certain center where -- -- -- As -- the cowboys lose all is right with the world.

Saying then.

Brother thank you Tom since counter ignorant but we have about Tom come close -- well.

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