Oil and gas pricing outlook ahead of peak summer travel

Oil prices (BZ=F, CL=F) are beginning to rise on Monday after recent data revealed weak crude oil demand in China. What does this mean for gas prices (RB=F) at the pump as global energy markets respond to demand trends ahead of the summer travel season?

Yahoo Finance Reporter Ines Ferré joins Wealth! to break down the latest for oil and gas prices and what consumers can expect at the pumps this week.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Nicholas Jacobino

Video transcript

Now let's take a look at the price of oil on the rise this morning with crude prices trading just above 79 bucks a barrel.

This is a slight rebound from earlier declines after new data showed weak demand for China's crude oil for the month of May here with the latest on oil prices and how much you'll be paying at the pump.

This week.

We have Yahoo finances and as for Ray and as let's start on oil since we seem to have a stronger than expected start to the week.

Yeah, that's right.

Ali with oil right now going up about 1% for WT I and for Brent crude as well.

You had that data coming out of China where industrial output was weak retail sales though did beat expectations.

So the market here taking some mixed signals as far as what the China data is showing, but look what analysts are expecting for oil, which has been on a downward trend in recent weeks is that you're going to have summer demand drawing down on stockpiles of oil this summer.

So you will still will have a relatively tight market when it comes to the oil prices.

In fact, analysts are saying that if oil gets into the mid seventies, let's say for Brent crude, for example, then you're going to have buyers like China stepping in to scoop up some of that oil from the market.

You're going to have the US stepping in to refill its spr its strategic petroleum reserve.

If oil goes a little bit too high, then you're going to have ready to step in.

Remember that OPEC has announced that it wants to start phasing out its voluntary cuts starting in October, something that had sort of jolted the oil markets when Opec Plus had announced that because the markets, analysts had been expecting their cuts to extend throughout the rest of the year.

Voluntary cuts included as far as gasoline prices are concerned, those have been cooling.

So we are seeing gasoline prices at the pump at an average of three 45 per gallon today a month ago, that was $3.60.

Part of the reason why you've seen some of the cooling is because you've had wholesale prices that have been sliding again.

Oil prices also trending down which has helped uh drivers at the pump alley.

Thanks, keeping track of all the gas prices which we know have been a headache for consumers.

Appreciate it.