AAA cautions over gas prices: Oil market disruptors 'always lurking'

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Economic slowdown, warfare tensions and hurricane season loom over the oil market's horizon, and AAA's Andrew Gross details where U.S. gas prices are heading.

"A lot of oil traders and people in the market are trying to figure out: What's OPEC up to? They didn't really give a clear reason why they did it," Gross explained. "And there are a lot of caveats to it, whether every OPEC nation is going to slash or just a few, and they said it was voluntary. And it's like, what does that mean? You're either going to slash or you're not cutting voluntarily.

According to AAA spokesperson Andrew Gross, geography plays"a big role" in the price you pay at the pump.account for about 55% to 60% of what American drivers pay at the pump, the AAA spokesperson argued, the other major contributing factor is demand. "Will we have a robust driving season this year? Will a lot of people be hitting the pump and fueling up? That much we don't know," he said. "Demand did drop a little bit last week, and we have not had three weeks in a row of demand being over 9 million barrels a day in two or three years."

Even though gasoline prices are likely to continue to move higher incrementally each week, U.S. drivers should not expect a supply shortage as Gross claimed there’s "

 

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