In a report this week titled “Cruel Summer,” JP Morgan predicted that the U.S. national average for regular gasoline could rise to $6 per gallon in the coming months.
On the national average, conventional gas continued to rise for ten days in a row, reaching $4,589 on Thursday. This reflects an increase of 2 cents in the last day, an increase of 17 cents last week and an increase of approximately 49 cents last month. In addition, JP Morgan predicts that the situation will worsen in the coming months and will exceed $6 per gallon nationwide.
“In anticipation of strong demand recovery… US retail price could rise another 37% in August to the national average of $6.20 per gallon,” Natasha Kaneva, head of commodities research at JP Morgan, said for the week.
According to Business Insider:
The prophecy came just days before the Memorial Day holiday, the traditional start of the summer driving season that continues on Labor Day in early September.
The 37% figure came as the national average retail gas price exceeded $4.50 per gallon for the first time on Tuesday. Kaneva said that price was up about $0.50 from the previous month and had a “significant jump” from $3.04 per gallon on the same day in 2021.
“Cruel summer: US gasoline prices will rise above $6… Typically, refineries produce more gasoline ahead of summer, building up inventories. But this year, US gasoline stocks have fallen seasonally since mid-April.”
JPMorgan open
– Jonathan Ferro (@FerroTV) 17 May 2022
No state in the country has the average gas price below $4, and California is the only state to average more than $6, from $6,061 on Thursday. In other states, including Hawaii, Alaska, Washington, Oregon, and Nevada, prices exceed $5 per gallon.
The Governor of Florida also made the guesswork. Ron DeSantis (R) said gasoline prices could go up to $6 this week under President Joe Biden’s leadership.
“They are canceling oil and gas leases in places like Alaska and people who have to fill their gas tanks are paying the price for this bad policy,” he said at a news conference Wednesday. road prices.
“I think you’ll see if they don’t change course, you’re going to see more than $5 a gallon for unleaded fuel, and in places like California it’s probably going to be $7 or $8 because of all the taxes… they have it. It’s going to be a huge, huge blow to a lot of workers,” he said. He added that it is certainly possible for “Biden to put this country in recession” because of his continued mismanagement.
Source: Breitbart
