It’s no secret that gas prices have skyrocketed under the Brandon Administration.
On the right, there are many accusations that the price increase is due to pipeline shutdowns and other anti-energy producer policies coming from the White House.
The left and legacy media blamed energy producers for not pumping enough oil and demand surged due to Covid outages.
Whatever the cause, and it’s more likely the former than the latter if there’s still some of both, it’s undeniable that the cost of the pump has gone up a lot.
Unfortunately, JP Morgan says that probably won’t change anytime soon. In fact, according to its analysis, gas could soon cost $10 a gallon.
According to a news from WFLA, including an increase in crude oil prices:
A report written by Christyan Malek, head of oil and gas research at JP Morgan, says oil prices could hit $125 next year. The JP Morgan analysis was published on Nov. 29 and predicts crude oil prices will average $88 per barrel in 2022 before “spilling” to $125.
At that price point, gas at the pump would probably cost around $5. It’s currently averaging around $3.50 dollars nationally.
For reference, a barrel of crude currently costs about $70, so the $125 figure would be roughly twice the price of crude. And that’s only in the short term. According to the same report, a barrel of crude oil could reach $190 by 2025. In April 2020, the price of Brent crude oil was $14.98 per barrel.
And while the original prediction was $190 coming in 2020, Fox Business is reporting that it may still be correct. According to that source, analysts see the rise in coal prices as a sign that oil prices will also rise:
While oil prices are trading at seven-year highs, other forms of energy, such as coal, LNG, natural gas and uranium, are holding at or near all-time highs.
“We believe that coal price movements can reflect supply, demand, capital costs and energy transition issues for all fossil fuels, and certainly oil prices will move in the same direction. model (oil-adjusted inflation), wrote a team of strategists at JPMorgan Chase & Co. led by Marko Kolanovic.
So whatever the reason, get ready to start paying extra at the pump. More.
Source link Thanks, Brandon: JP Morgan says $190 per barrel of oil coming soon