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Oil prices: China demand is a ‘dilemma,’ India may hold solution

    Oil (CL=F, BZ=F) prices are sinking again on Friday after breaking through the $80 threshold in mid-March. Mizuho Americas Executive Director of Energy Futures Bob Yawger joins Yahoo Finance Live to discuss broader trends in the oil and gas markets.  US refineries are set to ramp up production, Yawger signals, with geopolitical tensions and the upcoming "driving season" putting pressure on supply. Yawger advises, however, that gas prices are unlikely to trend much higher: the refineries have learned their lesson following COVID when the price shot up to $5 and demand tanked. "They will try to feather the price somewhere around $3.50…They know what will happen if gas gets to $5," Yawger says.  The outlook for oil is exacerbated by China's demand situation. Following COVID, China "rallied the market to the moon," but according to Yawger, "that's not in the cards any time soon." India, however, could be a future demand agent: Yawger explains that the nation's substantial population will soon be driving gas-guzzling used American vehicles. With this in mind, Yawger projects peak oil production won't occur until 2035.  For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Gabriel Roy.

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