Even as gas price hit $5 gallon for the first time ever this week, analysts speculate prices could reach $5.50 by the end of the month and $6 in the future (See Yahoo! Finance and The Washington Post).
Reports in many leading journals said gas prices are likely to remain high through next year, although some say they may drop from their current record levels.
“..oil and gasoline prices are on a tear that for the time being seems unstoppable,” said a Yahoo! Finance opinion post.
Gas prices are set by worldwide demand, and with Europe planning to reduce its Russian oil consumption by 90 percent by year’s end, the available supply of oil will fall and prices will likely go up, said analysts. Russia is the third largest producer of oil in the world.
Also, demand for oil and gas is expected to rise in China, as that country ends strick COVID lockdowns. Again, increased demand may lead to higher prices.
Yahoo!Finance concludes the best way to lower gas prices is simply to send more aid to Ukraine to speed up a Russian defeat. Or a global recession would bring down prices, and Europe may be heading to one, as it weans itself from Russian oil.
Separately, the Biden Administration has resumed interest in a national gas tax holiday for a limited time, reports The Hill. Although, a tax holiday might only save the consumer about 18 cents a gallon said a separate story at Yahoo!Finance.
In any event, the prevailing opinion is that high gas prices aren’t going away any time soon, according to recent reports in Barron’s, S&P Global, The Washington Post, CNN in addition to Yahoo!Finance.
Photo via ABC7News
I just paid $6.29 for premium in Seattle.