Gas price dip is a head fake
The national average could climb back up to $4.30 per gallon or higher
Louisiana oil companies face challenges trying to ramp up production: 'We're doing all we can'
The White House has banned all Russian oil and gas imports, but ramping up U.S. production is not that simple. Companies not only need hundreds of thousands of dollars to get equipment back up and running, they also need the manpower.
Gas prices may have eased slightly from their most recent highs, but for Americans the relief isn't projected to last, according to an industry expert.
Andy Lipow, the president of Lipow Oil Associates, estimates that the rebound of gasoline futures, up over 30 cents per gallon, will end the recent pullback of pump prices. Futures contracts allow traders to anticipate price moves and demand.
RUSSIA INVADES UKRAINE: LIVE UPDATES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UGA | UNITED STATES GASOLINE FUND - USD ACC | 60.18 | -0.11 | -0.18% |
CLICK HERE TO READ MORE ON FOX BUSINESS
Gas prices in Westchester are above $6 as prices at the pump continue to rise across the Southland on Sunday, March 13, 2022, in Los Angeles, CA. (Jason Armond/Los Angeles Times via Getty Images / Getty Images)
"Given the significant increase in futures prices since last week, the decline in the national average price of gasoline is about to end," Lipow said. "This is bad news for the consumer as prices simply will not fall very much from their recent record levels."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 71.75 | +0.12 | +0.17% |
On Monday crude prices jumped 7% to the $112 level. Given the rally, gasoline prices are expected to make a U-turn in the next week, Lipow said. He estimated that the national average could climb back to $4.30 per gallon. In California, some locations are nearing $6.
RUSSIA, UKRAINE COULD DEAL BLOW TO US FOOD SUPPLY
The ongoing conflict between Russia and Ukraine could squeeze prices even further due to strained supply and increased demand, according to economists.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The national average on Feb. 23, before Ukraine was invaded, notched $3.53 per gallon before steadily inclining to record highs above $4.30 a gallon, according to AAA data. While prices remain elevated, levels eased to $4.25.