Gulf Oil CEO, Joe Petrowski, expects oil prices to drop by half by year’s end, but that doesn’t mean gasoline prices will be cut in half.
The drop in price is expected due to record amounts of oil and natural gas being produced in the U.S. and in Canada, in addition to OPEC supplies being higher. Even if oil prices drop however, gas prices won’t experience a steep decrease since it still has to be refined and transported.
The report comes on the heel of oil prices rising 20 percent over the last three months. But Petrowski believes a steep crude drop is expected since travelling is picking up and less oil is being used. “In fact, we’re using no oil in the energy sector,” he said on the CNBC show Squawk Box.