The price of gas hit record highs this week, as consumers are grappling with soaring inflation.
With oil prices hovering around $112 per barrel, drivers are unlikely to see much relief at the pump for now.
Tom Kloza, OPIS head of energy analysis, told Yahoo Finance that the futures market in gasoline tends to peak in May. This May has brought particular mayhem if you will, if you will, said Tom Kloza, OPIS head of energy analysis. He said that the Russian invasion of Ukraine is expected to keep oil prices high.
I think we are looking at higher prices in the next week or so, and then maybe a little moderation before July - but July and August are going to be sizzling months, Kloza said.
The Consumer Price Index shows that inflation is red hot and is still hot. Although gasoline prices fell slightly in April, they are expected to go back in April due to oil price volatility and not enough refining capacity for gasoline, diesel and jet fuel.
We're going to see a lot of insidious inflation because we're looking at the highest diesel prices and the largest jet fuel prices ever, and we're going to see a lot of insidious inflation. Kloza said that it will be going to manifest itself in higher airfare and pretty much higher everything that moves across the country.
We're looking at epic, epic margins for U.S. refiners right now. Kloza said that the people that refine the oil into products like diesel, jet fuel and gasoline are making epic profits, because of all the different areas of the business.
He said that the market is bidding it up and not because they are colluding.