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Schneider Electric commodity analyst Matt Smith breaks down what's driving up gas prices.
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Thank -- so bad news of the problems -- -- just saying especially if you living California with crude oil prices spiking California motorists now paying an average.
Of three dollars and 77.
Cents a gallon that's -- average and with refineries soon switching to costlier summer blends Golden State motorists could soon see.
Four box.
-- -- national gas prices currently average three dollars and 42 cents -- down that is up from 329 just a month ago.
Matt Smith is a commodity analyst at Schneider -- electric and he's here with more on what is behind the gas price jump at the pop.
-- California I was reading one report that it that it prices rose seventeen cents yesterday.
What happened.
Well actually I've got more bad news -- not the national retail price is increasing as well.
-- -- just generally in this period now where I was seeing rising prices as you said the and depressive and gasoline was was cheaper last month.
Add to based fifth accounted for California prices was three dollars fifty now -- -- -- 377.
On the national average we're -- we're grounds that it.
At 345 when we were at 320 and so we are seeing -- across the board but they just hiring California because that's starting from a higher base there.
So anything that -- go up from here I mean -- -- the switch over to suburb but that's driving it is that it obviously that's gonna continue.
Still it's a seasonal thing really as we get more demands as we -- into driving season.
If we follow a blueprint if we did as we did last year rose as the year before we see currencies is gradually rise from here.
It's a peak in in April.
On national average probably short of four dollars but in California you going to be looking well beyond that especially for -- -- -- -- 375 -- now.
So are prices so high because if you look at the data especially at a MasterCard we've bounced off the bottom.
But it showed that driving demand I mean how much fuel were actually buying.
Is at the lowest level in decades and decades and decades.
That's right total that products supplied so with the -- in the US.
Has been flat lining race then buys is it's just me gonna continue to go down -- -- -- -- -- -- -- as -- process.
And is not something because -- efficiencies or anything like that it's because of high unemployment people are cutting back on driving.
-- however the reality is there's this high input prices as -- A little break say you have -- -- a 115 dollars and so is sending natural that we -- in this new paradigm now really that we are gonna see higher prices.
And as you mentioned before that's because of this low interest rate economy that we're in this -- -- dollar policy is.
Well yet the weaker dollar.
-- people trying to make money in commodities that are piling into the futures that you mentioned.
Other things that are driving at present could -- -- of the situation in the Middle East today and you look at what's going on between Israel and Syria.
We're not seeing a big reaction.
In futures -- today to -- explosions that we're seeing there -- looking on the screen here.
But I don't know I -- -- as tensions Ryan's.
In the Middle East that -- has to put pressure on the price of -- I would thank you great.
Yet it very much a very much could have an impact because again -- seeing these rising pockets that -- political tension.
We had the Algerian seats last week.
Yesterday -- -- -- we had airstrikes by Israel now on these suppose it's convoys with chemical weapons from that Hezbollah.
And said he sees and then as Iran as well going on as well -- -- different aspects but at the same time.
Use that you've got equities and a five year high you've got the Euro rallying and say -- crude prices being lifted by this Mary out of different influences earned.
-- -- Thanks I think the perfect isn't -- It's okay now that.
