Exxon executive says $5 per gallon unlikely in near future

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Exxon Mobil CEO Rex Tillerson said American drivers shouldn’t worry about $5-per-gallon gas.

During an interview on The Today Show, Tillerson told host Matt Lauer that the national average is unlikely to reach the $5-gallon mark based on basic supply and demand fundamentals. Some analysts have predicted in recent weeks that gasoline could top $5 nationally as tensions rise with Iran, causing higher crude oil prices.

However, he said there are unknown factors that could drive up cost of gas per gallon in the coming summer months.

“Again, the unknown in here is the market’s view of the political risk,” he said. “If the rhetoric gets more heated, if a problem flares up anywhere else in the world, then certainly it could drive these prices up further.”

Gasoline prices have been steadily rising since the New Year. The national average remained the same overnight at $3.75 overnight, but it’s risen 28 cents over the past month. Most analysts have pointed the blame for higher prices at the pump on rising tensions with Iran and three northeast refineries closing that have sparked higher crude oil prices.

Tom Kloza, the chief analyst for Oil Price Information Service, said emerging markets have also caused global crude oil prices to rise.

“To a great extent, you can blame the tens of millions of people who have moved from third world poverty into something approaching the middle class,” he said. “Those folks need fuel for transportation, agriculture and industry.”

11 Comments

  1. hgnis

    That damn Obama – only lining the pockets of his Big Oil buddies.
    (On a side note….the supply and demand fundamentals have not been a siginificant driving factor in local oil prices above $2.50 for the last 5 years. It is SOMETHING ELSE.)

    #1
  2. Kave

    “If the rhetoric gets more heated, then certainly it could drive these prices up further.”

    Why do you think the Republicans are stoking the Iran fire? Sad that Washington plays politics with our pocketbook.

    #2
  3. Goldwinger2008

    Amazing! This is just more examples of the Hearst Corporation making their political contributions disguised as “articles”. They’re actually trying to downplay the high gas prices in order to help Obama’s campaign! Compare this with the almost daily drubbing and scaremongering that they practiced during George Bush’s presidency.

    But… as BAD as they support for Obama is NOW, just wait… it’s gonna get a LOT worse the closer we get to election day. They’re going to have to go all out for Obama. They’re going to have to expose themselves for the democratic party affiliate that they are.

    #3
  4. Roro

    “Exxon Mobil CEO Rex Tillerson said American drivers shouldn’t worry about $5-per-gallon gas.” Somehow that doesn’t make me feel better. Especially when just “talk” is driving up the price.

    #4
  5. drumb47

    How wonderful it would be if Speculators were taken out of the price equation for a barrel of oil. It is reported that speculators add from
    $25 to $30 to the real price of oil. This practice needs to end. Speculators are no more than bottom feeders.

    #5
  6. Dan X. McGraw

    Hearst Corp. isn’t saying anything. We are just reporting what Exxon Mobil’s CEO is saying about gas prices.

    #6
  7. Delusional at best he is. How is Exxon going to pay for that new ‘consolidated campus’ they are constructing at the intersection of the Hardy Toll Road and I-45 in North Houston if they cannot get $5 or better/gal for petro?

    #7
  8. Rich

    I could care less if gas hits $5/gallon. I live less than a mile from work and fill up my tank once a month. I don’t need a 3000 sq foot house in the suburbs to store useless stuff. I walk home in less time than it takes most people to drive home. Let me tell you, it makes a difference and it’s worth the sacrifice in space.

    #8
  9. JD

    Me and my family simply have cut way back on discretionary driving. If gas went up $1/gallon over night, it would cost us about 12 more dollars a week. I think we can handle that. You’re in control of your wallets on destiny when it comes to how much gas you burn.

    #9
  10. Johnny Rocko

    The only one allowed to talk there is talking. Something is bothering them.

    #10
  11. So we’ve got people saying it’s Obama’s fault and people saying it’s the Republican’s fault, and they’re both right that the saber-rattling over Iran is causing speculators to drive up the price of oil. And Republicans want their industrialist buddies to make a fortune, and Obama wants gasoline to be so expensive that wind and solar become more competitive. And neither of them give a hoot about us.

    #11