Expect lower prices at the pump in the coming months, as Saudi Arabia’s production cuts sent crude prices too high, energy expert Paul Sankey told CNBC on Thursday.
Global oil markets are significantly dependent on US gasoline consumption, which has been weakening consistently per week. Fresh signs of that caused both Brent crude and West Texas Intermediate oil to sink as much as 6% on Wednesday.
“The gasoline crack has absolutely cratered, really remarkably,” he said, referring to the price difference between crude and refined products. “That’s telling you the Saudis pushed the oil price too high.”
