Gulf Mexico, Mister Putin, Joe Dimaggio discussed on WTOP 24 Hour News

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The oil price information service tells us by how much. The average price is on a collision course, I would say with below $4. And that will happen probably around the middle of this month. And that's almost updated complete. It's like shooting fish in a barrel because wholesale prices have dramatically declined to drop in many cases below where they were before the Ukraine invasion. So you've got a little bit higher prices in the D.C. area in the northeast because you use reformulated gas, but even those prices and the wholesale markets have dropped 30 cents. So we're going to probably flirt with Joe DiMaggio's record streak of 56 days. In this case, 56 days of down moves next week. And we may get into the 60s before the middle of August. So what do you anticipate past that? I mean, can you even kind of project forward? You know, I think it can project, but you tend to say, I mean, right now, we're removing through a summer gauntlet where if you have hurricane formation in the gulf Mexico, where if you have power outages for refineries or if mister Putin is up to some of his ill well in Europe, you could see prices bounce back. But I don't think you'll see the street bounce back for the first three weeks of August. The rest of the world really does have to have its fingers crossed. And I think we have to, for the tropical development, which could really throw a monkey wrench into prices two or three months from now. So barring that, what is it? Is it OPEC stepping up production? Is it a better oil production and gasoline production in the U.S.? What factor is driving the downward trend here? Well, I think the market has priced in at least a shallow recession in the United States and perhaps in Europe. So a lot of the speculators have really exited and licking their wounds. The other thing is that Russia, for all of the scrutiny that is appropriately being rendered for them, they have been still exporting about as much fruit as they were before. The Ukrainian invasion and maybe that's because their own refineries don't demand much proof because they're in a deep deep recession or even something close to depression there. So we've been lucky, but you have to watch out for the world is a much more dangerous place than it's been for 20 years. So there's some things that can really sort of lead prices to bounce back. Not to the next three weeks. That's Tom close a global head of energy analysis for the oil price information service, crunching the numbers with Sean Hillary. You are listening to 103.5 FM and WTO P dot com. Say hello to

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