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Summer gas prices expected to rise ahead of peak travel season

Gas prices (RB=F) are expected to rise by about $0.10 per gallon this summer, according to the Energy Information Administration (EIA), as crude oil futures (CL=F, BZ=F) inch higher on geopolitical tensions.

Yahoo Finance Senior Business Reporter Ines Ferré details the price action travelers may see in gas before they fill up for their next summer road trip.

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

This post was written by Luke Carberry Mogan.

Video transcript

Oil and gas prices stabilized this week.

Consumers should prepare for some potential pain to their wallets.

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Let's get to Yahoo Finance's Inez Fray with those details, Inez.

Yeah, Josh and the EI A had recently said that they are forecasting that gasoline prices could go up by about 10 cents per gallon this summer.

On average to average around $3.70 per gallon for the summer.

And this is because of refining capacity being lower also because of refining costs.

These refineries are older refineries, it's expensive to maintain them and it's estimated that over the last several years, you've seen refining capacity down by about 7%.

Now, earlier today, we spoke to gas buddies, Patrick Deja and he had said that he doesn't see that 10 cent rise necessarily this summer.

He thinks that the prices are going to be around the mid three range.

Right now.

You're looking at the average of gasoline at $3.60 a month ago.

It was 366.

So it's six cents lower from a month ago and a year ago, it was at 353.

Of course, if this summer.

You do see some hurricane action, especially around the time of August.

Certainly, we could see prices spike around that time.

As far as oil is concerned, we have seen oil inching higher part of this has to do with the drone attacks from Ukraine that are continuing against Russian refineries.

You also had that stimulus out of China to prop up its housing market.

So that is bullish for oil.

And so we have seen wt I today settling just below the $80 a barrel.

That's a resistance level for Wt I Brent crude settling above $83 a barrel.

Guys Ines.

Thanks so much.

Appreciate it.