Why one oil strategist says gas can be on the road for $ 7

Inflation has already damaged Americans’ wallets at the gas station. And now, Ukraine the crisis could raise these prices even higher.

Dan DickerA longtime strategist in oil and energy markets, warns that gas prices could rise to $ 7 as the price of crude oil continues to rise due to a lack of global investment in supplies and geopolitical tensions abroad.

“I guess you’ll see $ 5 for gas at any three-digit amount [oil price]as soon as you reach $ 100. You can get $ 6.50 or $ 7 for $ 120 or $ 130 [per barrel]”Sir. Dicker said Yahoo Finance Live. “Forget about $ 150 [per barrel]I don’t know where we will be then. “

Sir. Dickerfounder of The Energy Word, said it was difficult to predict the timing of such costs, but that the price per barrel had already risen faster this year than he expected earlier.

“Such fundamental growth in the oil market,” he said, “it’s hard to stop this train.”

The current national average per gallon of conventional gas was $ 3.52 as of Thursday, the AAA reported. According to GasBuddy, this is an increase of 16.5 cents per gallon compared to a month ago and 97.2 cents higher than a year ago.

The price of WTI crude oil opened on Thursday at $ 90.90 per barrel, up 58% from $ 57.25 a year ago.

It is expected that the roar of swords in Eastern Europe will only worsen the situation. With the fear of invasion Ukraine on the part of Russia, experts have raised concerns that such a geopolitical conflict will lead to painful effects due to further restrictions on Russian oil supplies and, consequently, further rising prices.

According to the US Energy Information Administration, Russia is the world’s third largest producer of oil and other liquids, producing an average of 10.5 million barrels per day. This is about 10% of world oil production.

“In Ukraine the dust was added to the fire at energy prices, ”he said. Dicker said. But he added that Ukraine is not the reason that prices have risen so rapidly over the past year. Lack of investment in supplies is the main culprit, he said.

“What has happened over the last four or five years and even longer is a significant supply disruption, and many of these producers cannot really respond to the growing demand for oil,” he said. Dicker said. “Now we’re not sure if anyone can put fresh stocks on this market, no matter where the prices go.”

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