July 9,2018-
Oil has surged over 10% just in time for summer’s busiest travel holiday, costing motorists over $1 billion more than last year,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “All the ingredients exist for the national average to inch closer to $3 per gallon, just in time for the second half of the summer. Undoubtedly, the second half of the summer will be pricier than the first, thanks to OPEC’s production increase falling short of expectations, sanctions to be placed back on Iran by November and falling U.S. oil inventories. And to rub some salt in the wound, hurricane season is still upon us, adding more guesswork to where gas prices might spend the second half of the summer. Make no mistake, it won’t be pretty, not nearly as “pretty” as the first half of the summer. Be ready for volatility and likely higher prices at the pump in July and August.”
Meanwhile CNBC reports that “The Oil Price Information Service’s Tom Kloza recently estimated that prices could surge another 10 percent this summer — a rally that could hit consumers at the gas pumps.
“We can get into the $80s for Brent again, and I think we could get to $80 for WTI,” the firm’s global head of energy analysis said on CNBC’s “Futures Now.”
Kloza, who accurately called the 2015 oil collapse, reiterated his bullish case for oil three days after the commodity hit its highest price since 2014. However, he rolled back the odds of an oil shock to $100 this year.”