JP Morgan analysts predict gas will surge past $6 this summer abc15
SOUTHFIELD, Mich. — AAA said the average price of a gallon of regular gas hit $4.58 on Thursday, setting a new record high in the U.S. Could prices be headed even higher to more than $6 a gallon? JP Morgan analysts think so.
“If exports persist at this elevated pace and refinery runs — already near the top of the range for reasonable utilization rates — fall within our expectations, gasoline inventories could continue to draw to levels well below 2008 lows and retail gasoline prices could climb to $6/gal or even higher,” the report warned.University of Michigan Economic Forecaster Gabriel Ehrlich is optimistic that prices will not go that high.
So what drives crude oil prices? Economists say it is about global supply and demand. There are many unknowns that could impact supply and demand in the coming months.“We don’t know how the war is going to unfold. Is it going to be prolonged? Will it end soon? Will Russia escalate the war? Certainly, the risks surrounding that are a big part of why prices are so high right now and why there is a risk they could go even higher,” said Ehrlich.
Another unknown is just how much an increase in gas prices will decrease demand and increase supply. So far domestic oil companies and OPEC have not ramped up production.
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