Gas prices may have eased slightly from their most recent highs, but for Americans the relief isn’t projected to last, according to an industry expert.
Andy Lipow, the president of Lipow Oil Associates, estimates that the rebound of gasoline futures, up over 30 cents per gallon, will end the recent pullback of pump prices. Futures contracts allow traders to anticipate price moves and demand.
|UGA||UNITED STATES GASOLINE FUND LP PARTNERSHIP UNITS||55.51||-4.94||-8.17%|
“Given the significant increase in futures prices since last week, the decline in the national average price of gasoline is about to end,” Lipow said. “This is bad news for the consumer as prices simply will not fall very much from their recent record levels.”
|USO||UNITED STATES OIL FUND L.P.||74.53||-6.21||-7.69%|
On Monday crude prices jumped 7% to the $112 level. Given the rally, gasoline prices are expected to make a U-turn in the next week, Lipow said. He estimated that the national average could climb back to $4.30 per gallon. In California, some locations are nearing $6.
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The ongoing conflict between Russia and Ukraine could squeeze prices even further due to strained supply and increased demand, according to economists.
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The national average on Feb. 23, before Ukraine was invaded, notched $3.53 per gallon before steadily inclining to record highs above $4.30 a gallon, according to AAA data. While prices remain elevated, levels eased to $4.25.