He says the phenomenon is real, but ultimately a “minor thing” compared with broader market forces.
Still, Noel expects gasoline prices to continue to lower in the coming weeks, providing the U.S.-Iran cease-fire remains in place, but warns of other market forces that can shape oil prices.
“There’s lots of things that affect crude prices, and all those things are still happening in the background,” he explains. “The main thing is we’re moving into the summer driving season, where demand is normally higher, and where you might expect crude prices to be a little higher, anyway.”
Additionally, he points out that several countries, including the U.S., have drawn out their strategic petroleum reserves, and in order to replenish, may begin to buy up oil out of the market, which would increase demand.
Trump authorized the Department of Energy to release 172 million barrels of oil from the Strategic Petroleum Reserve in March.
