Us Gas Prices Are Rising At An All-Time High. Expect a ‘Terrible Summer’
Crude oil prices have risen for more than two months after the EU approved a plan to ban most Russian oil imports from invading Ukraine, and China has shown signs of easing its COVID-19 locks - meaning less oil will be available. In the world market.
The latest round of sanctions will immediately affect 75% of Russian oil imports, and by the end of the year, 90% of Russian oil imports to Europe will be banned, European Council President Charles Michael tweeted on Monday.
With more than half the price of petrol and oil, consumers are likely to see gas prices break new records in the coming weeks.
"After several weeks of rising gas prices, prices fell nationally before Memorial Day last week, but I'm afraid the good news will end there," said Patrick de Hahn, head of petroleum analysis at GasBudd.
When will gas prices fall?
As the summer driving season heats up, consumers need to be prepared for a “terrible summer” with low seasonal gas reserves from 2019, said Natasha Ganeva, JPMorgan leader of global commodities strategy last week. He predicted that the national average for regular Unlead would rise to $ 6.20 a gallon on Labor Day.
The national average on Tuesday was $ 4.62, up 45 cents from a month earlier and $ 1.58 a year earlier, the AAA said.
Even before the EU's announcement, analysts had already warned that gas prices would rise this year due to declining oil supplies and the unsatisfactory willingness of consumers to travel after two years of epidemic controls.
Bank of America's global commodity researchers have belatedly reported that "crude oil reserves have plummeted to dangerous lows in parts of Europe, North America and Asia."