The debate here needs to be about moving away from oil as a means of looking at energy security. There are a lot of new technologies that can be looked at for this.

The price hike comes as crude oil costs continue to climb on energy security woes involving Iran and Nigeria. In fact, crude oil was trading above $65 per barrel this week - a level not seen since the hurricanes of 2005.

Energy security is top of the agenda for oil-importing nations, efforts are made to diversify the source of oil supplies and build strategic petroleum reserves.

Market operators are aware that the gasoline market will be tight this summer because of the specification changes. The main concern a couple weeks ago was that supply was more than plentiful, but when you look at gasoline stockpiles, they don't reflect the gasoline that will actually be used in summer.

Even if demand goes up, the level of stocks remains very high, which weighs on prices.

Fundamentals right now are bearish. Supplies are building really quickly. The trend is definitely to be lower, at least going into the second quarter.