Results: Gas Futures on the Rise

The renewed vigor in oil prices of late is only just the beginning, contends veteran industry analyst Phillip Streible of Blue Line Futures. Streible thinks oil prices are at risk of hitting $60 in the near-term due to an Omicron-related demand slowdown. But that will likely prove to be a buying opportunity in front of a "long-term" rally in 2022. "We are going to see the demand picture continue to pick up going into the [summer/2022] driving season. Hopefully we can get this pandemic behind us. You'll see all that pent-up travel demand really take back off again. Flights were pretty full over the holiday weekend, but we expect them to get even fuller as the capacity picks up. If you look at the supply side on crude oil, we have 432 million barrels. The five-year average is 460 million, so supplies are quite tight. We don't expect OPEC to take any kind of reaction by picking up their supply picture. So, we expect any kind of small supply shock would send prices higher. We are expecting $85 to $90 [a barrel] oil next year," said Streible on Yahoo Finance Live. Are you ready for higher gas prices at the pump?

Oil's recent bull move has some predicting further pain at the gas pump in 2022. Gas price tracking outfit GasBuddy predicted in a new report on Tuesday that the national average price for gas will reach $3.41 a gallon in 2022 compared to $3.02 this year. GasBuddy didn't rule out gas prices hitting $4 a gallon by the Memorial Day holiday. Are you planning on going on vacation in 2022 by car/truck?

According to US EIA (Energy Information Administration), gas prices are based on a combination of monetary and fiscal details: the price of crude oil, taxes, refining costs, and distribution costs. Crude oil price is the single biggest factor in the price of gasoline. The US Gov't. does not control the price of oil futures or the price at the pump. States tax gasoline and no US President controls the price of gas either. In general, were you aware of how global gas markets work?