It’s no secret that gas prices have skyrocketed under the Brandon Administration.
On the right, allegations abound that the price increases are due to pipeline shutdowns and other anti-energy producer policies coming from the White House.
The left and legacy media outlets claim that the fault lies with energy producers for not pumping enough oil and rising demand due to a letup of the Covid lockdowns.
Whatever the cause, and it’s likely more the former than the latter if still some of both, what is undeniable is that the cost at the pump has increased tremendously.
Unfortunately, JP Morgan is saying that likely won’t change anytime soon. In fact, according to its analysis, gas might soon cost $10 a gallon.
According to a news report from WFLA, which covers the increase in the price of crude:
A report written by Christyan Malek, J.P. Morgan’s head of oil and gas research, said the price of oil could go up to $125 next year. The J.P. Morgan analysis was published on Nov. 29 and is predicting crude prices will average $88 per barrel in 2022 before “overshooting” to the $125 price point.
At that price point, gas at the pump would likely cost about $5. It is currently about $3.5 dollars on average across the nation.
For reference, a barrel of crude currently costs somewhere around $70, so the $125 figure would be a near-doubling of the cost of crude. And that’s just in the short term. According to the same report, a barrel of crude might approach $190 by 2025. In April 2020, the cost of Brent crude was $14.98 a barrel.
And while the original $190 prediction came in 2020, Fox Business is reporting that it’s likely still accurate. According to that outlet, analysts are seeing the increase in the price of coal as an indication that the cost of oil will rise too:
While oil prices are trading at their highest levels in seven years, other energy forms, like coal, LNG, natural gas electricity and uranium, are holding at or near all-time highs.
“We believe the evolution of coal prices might reflect supply, demand, cost of capital and energy transitioning issues for all fossil fuels, and it would certainly be possible that oil prices will follow the same pattern (inflation adjusted for oil, that would be in a $150-200/bbl range),” wrote a team of JPMorgan Chase & Co. strategists led by Marko Kolanovic.
So, whatever the reason, get ready to start paying more at the pump. A lot more.