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.
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.
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