This May could get pricey for New Jersey drivers, just as we get near Memorial Day and the summer driving season.
Tom Kloza of the Oil Price Information Service said the push to limit Iranian oil imports will tighten world oil markets in May.
“We’re not likely to see OPEC kick in with extra oil until after they meet in late May. So it’s going to be a very very dynamic and perhaps wild May,” he said.
It’s possible if global supplies tighten we could get additional oil from Saudi Arabia or the United Arab Emirates, he said.
“But there are others hot spots in the world right now. There’s tremendous diversity. It can be below $2.50 in some Southeastern states but above $4 in California. New Jersey is $2.91 at the moment and probably headed a little bit higher,” he said.
And Kloza says if OPEC does not increase imports, crude might get to $80 per barrel. What does that mean for gas prices?
“We could see a lot of numbers in New Jersey above three dollars. Demand is very brisk,” he said.
But Kloza said driver habits during a spike in prices from 2011 through 2014 proved people will still travel “even if you had prices between 325 and 350.
“So it looks like a painful day,” he said. We’ll have to see what OPEC does.”