Don’t Hold Your Breath: Gas Prices May Take Turn For The Worse
(TargetLiberty.org) – Gas prices across the US are high, but the one bit of good news is they’re not quite as high as they were last month. President Joe Biden has focused on that fact as he tries to argue inflation isn’t as bad as everyone thinks. However, experts say the dip in the price of gas is only temporary — and soon, they’ll start rising again.
American families are finally starting to get relief at the gas pump – but prices are still way too high.
I'm urging the Senate to pass the #LowerFoodAndFuelCostsAct to bring down prices at the pump and at the grocery store.https://t.co/S37H0dv8qV
— Ami Bera, M.D. (@RepBera) July 15, 2022
On July 17, the average price of a gallon of regular gasoline was $4.53, down from a record of $5.01 in mid-June. Although the dip has been a relief for hard-pressed American families, it’s still $1.36 higher than the same time last year. Between the Biden administration’s green agenda and Russia’s invasion of Ukraine, there’s a lot of upward pressure on oil prices. Now market analysts are warning an upcoming EU ban on Russian oil will make the situation a lot worse.
The EU is in big trouble because it relies so much on Russian energy, and it’s trying to change that in a hurry. Part of the plan is a total ban on imports, which kicks in next February — but now it’s emerged that a ban on Russian coal, which comes into effect in August, could cover fuel oil too. It turns out the EU’s customs definition of coal also technically includes heavy fuel oil.
Either way, as the EU shifts away from Russia and starts buying its fuel from other suppliers, the market price of oil is going to rise again. If Russia retaliates against sanctions by slashing production, the oil price could triple, according to JP Morgan. It won’t take anything close to that to push gas above $5 per gallon again.
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