BY The Western JournalMay 18, 2022
2 years ago

Major US Bank Warns of 'Cruel Summer' Fueled by Gas Prices Hitting an Unthinkable Level

Americans are facing what a major bank calls a “cruel summer” with gasoline prices that could hit $6 a gallon, according to a new report.

JPMorgan said that with fuel inventories at their lowest level since 2019, the summer driving season will burn a hole in Americans’ wallets.

"With expectations of strong driving demand ... US retail price could surge another 37 percent by August," JPMorgan wrote in its report, titled "Cruel Summer," according to CNN.

"There is a real risk the price could reach $6+ a gallon by August," Natasha Kaneva, head of global oil and commodities research at JPMorgan, told the outlet.

Currently, $6 a gallon is the California average for a gallon of gas, according to AAA, which noted on Wednesday that yet another record high for a gallon of unleaded regular was set with the national average now hitting $4.567 a gallon.

As noted by the New York Post, the price of gas now tops $4 a gallon in every state, a dubious milestone never before achieved.

"Even the annual seasonal demand dip for gasoline during the lull between spring break and Memorial Day, which would normally help lower prices, is having no effect this year," AAA spokesman Andrew Gross said.

Patrick De Haan, head of petroleum analysis at GasBuddy, said the $6 mark seems a stretch.

"I personally think we'd see a recession before we'd see a national average of $6,” he said, according to CNN.

But De Haan said that with supply this low and demand this high, "I don't think much is impossible in this market."

One issue with supply is that refining capacity in the U.S. and Canada is down from pre-pandemic days because of the closures of some plants and the conversion of others to renewable fuel.

JPMorgan reported that East Coast gasoline inventories have not been this low since 2011 and that supply remains short as oil companies export gasoline that might otherwise go to the East Coast.

"If exports persist at this elevated pace and refinery runs -- already near the top range for reasonable utilization rates -- fall within our expectations, gasoline inventories could continue to draw to levels below 2008 lows and retail gasoline prices could climb to $6/gallon or even higher," the bank's analysts wrote.

JPMorgan said that unless refineries "immediately" reduce what they export and produce more gasoline, "US consumers should not expect much in the way of relief in prices at the pump until the end of the year."

This article appeared originally on The Western Journal.

Written by: The Western Journal

NATIONAL NEWS

SEE ALL

Supreme Court Refuses To Hear Case Of Woman Ticketed For Honking Horn

In a profound setback for activists championing the cause of free speech through symbolic gestures, the Supreme Court has opted to remain on the sidelines.…
14 hours ago
 • By Staff Writers

Biden Admin Planted Operative In Fani Willis' Office

In what could be described as a startling revelation, sources allege that the Biden administration maneuvered to influence a prosecutorial investigation against former President Donald…
14 hours ago
 • By Staff Writers

Hunter Biden Grilled In D.C. Ahead Of Deposition

In a dramatic twist in Washington's political theater, Hunter Biden, the president's first son, has landed in the capital to face a Republican-led Congress eager…
14 hours ago
 • By Staff Writers

Trump Legal Team Officially Appeals Civil Fraud Verdict

In a recent judicial development that has captured national attention, former President Trump has taken legal steps to contest a substantial fine against him and…
14 hours ago
 • By Staff Writers

Jeb Bush Rushes In To Defend Trump

In an unexpected twist, former Republican Florida Governor Jeb Bush leaps to Donald Trump's defense in a Wall Street Journal op-ed. In a surprising alignment,…
15 hours ago
 • By Staff Writers

DON'T WAIT.

We publish the objective news, period. If you want the facts, then sign up below and join our movement for objective news:

    LATEST NEWS

    Newsletter

    Get news from American Digest in your inbox.

      By submitting this form, you are consenting to receive marketing emails from: American Digest, 3000 S. Hulen Street, Ste 124 #1064, Fort Worth, TX, 76109, US, http://americandigest.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact.
      Christian News Alerts is a conservative Christian publication. Share our articles to help spread the word.
      © 2024 - CHRISTIAN NEWS ALERTS - ALL RIGHTS RESERVED
      magnifier