Gas Prices Will Remain Cheap Into Fall, Analyst Tells CNBC

Due to the oversupply in oil, even when consumer demand dies down, gas prices will remain cheap, GasBuddy analysts said on CNBC Friday.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Expect cheap gas prices into the fall, GasBuddy's Gregg Laskowski, senior petroleum analyst, told CNBC's Jon Fortt on "Squawk Alley" Friday.

Gas prices have remained cheap ahead of the Fourth of July weekend due to heightened consumer demand, as a record amount of drivers are expected to hit the road for the holiday. But oil prices are moving higher even as gas prices move lower in a rare event today, Fortt reported.

Typically, if gas prices go lower, the price of oil follows.

"I know it's startling, but the reason we're seeing this is simply because supply is outpacing demand right now and it's been that way for quite awhile," Laskowski explained.

Even though consumer demand led to a slight rally in oil prices today, the oversupply still looms, he said.

"You're saying you expect these low prices to continue into the second half, even into the fall, because demand is not going to get any stronger. What gives you that kind of confidence?" Fortt asked.

The highest demand is usually seen in the peak of summer, Laskowski replied.

"Right now demand is matching the highest we've ever seen," he continued. The U.S. is producing 9.8 million barrels per day, matching a record set in August of 2007, but the supply is still outpacing those numbers.

Even if demand reaches 10 million barrels per day, "there is enough inventory to more than meet the demand," according to Laskowski.

Crude oil (WTI) did begin falling by 0.02% to $48.32 per barrel and Brent crude is lower by 0.04% to $48.69 per barrel, CNBC reports this afternoon.

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