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Gas prices: The ‘biggest factor' is Vladimir Putin, says analyst

·Markets Reporter
·2 min read

Gas prices have come off their highs, but relief at the pump may be short-lived, says one analyst.

“For the moment, we’re going to see the lowest prices we’e seen since May,” Tom Kloza, OPIS global head of energy told Yahoo Finance Live. “Unfortunately, I think we’re going to see prices rally after they find a bottom in the first half of July.”

Prices at the pump have decreased to a national average of $4.68 per gallon, after topping $5 last month.

Oil prices have been under pressure recently amid a stronger dollar and growing concerns of a global recession.

U.S. crude futures (CL=F) are currently trading north of $102 per barrel. Brent crude (BZ=F) is hovering above $105 per barrel. The international benchmark briefly fell below $100 last Wednesday for the first time since April.

Russian President Vladimir Putin attends a meeting with parliamentary leaders in Moscow, Russia July 7, 2022. Sputnik/Aleksey Nikolskyi/Kremlin via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY.
Russian President Vladimir Putin attends a meeting with parliamentary leaders in Moscow, Russia July 7, 2022. Sputnik/Aleksey Nikolskyi/Kremlin via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY.

Oil and gasoline's price trajectory going forward will depend on several factors, says the analyst.

“The biggest factor is Vladimir Putin. I think he’s demonstrated his ability to invoke pain on Western countries and particularly in Europe — and he still has some buttons that he might push, and he’s very unpredictable,” said Kloza.

“Secondly, I think you’ve got the heat and the high temperature and perhaps the instability of some of the grids. But biggest of all is hurricane season,” said Kloza. “I think that’s a really prevailing updraft for futures prices.”

Ines is a stock market reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

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