Bank of America is warning that gas prices could go significantly higher than they currently are as Americans are currently paying approximately $3.41 per gallon across the U.S. for regular and just over $4 per gallon for premium.
“Bank of America is now predicting that Brent crude oil, which drives gas prices, will zoom to $120 a barrel by June 2022,” CNN reported. “That’s 45% higher than current levels.”
Francisco Blanch, Bank of America’s head of global commodities, spoke with CNN about the prediction, noting that back in June he predicted that the price of crude oil would shoot to $100 a barrel.
“It’s very easy for prices to shoot up when demand conditions are tight like they are now,” Blanch said. “Back [in June], people thought we were crazy. Now, here we are. We are generally still quite bullish.”
The overwhelming majority of Americans, 65%, say that the economy is in poor shape under Democrat President Joe Biden, according to an AP poll released this week. An NBC News poll found that 60% of Americans rate Biden’s stewardship of the economy poorly.
On Tuesday, Biden pinned partial blame for high gas prices on other nations, claiming that they needed to do more to help solve the pain that Americans are feeling at the pump.
“If you take a look at, you know, gas prices and you take a look at oil prices, that is a consequence of, thus far, the refusal of Russia or the OPEC nations to pump more oil,” Biden claimed. “And we’ll see what happens on that score sooner than later.”
Sen. Joe Manchin (D-WV), chairman of the Senate Energy and Natural Resources Committee, pushed back on Biden’s claims during a Fox News interview on Wednesday night when he was asked about Biden’s remarks and who was to blame for higher gas prices.
“Well, I say that we can basically do more for ourself. We have been energy independent for the first time in 67 years,” Manchin said. “Why can’t we do more? Why can’t we produce more? We have got plenty of natural gas. My state, beautiful state of West Virginia, has an ocean of natural gas under it. If they just let us build a pipeline, we could get the product to market.”
“And why don’t we do more drilling, and why don’t we do more basically production in the United States?” Manchin continued. “I’m not depending on OPEC. I’m not depending on other countries for my energy anymore. We know how to do it. We have the technology. We should be resilient, relying on ourselves.”
When asked by Fox News anchor Bret Baier if Biden was wrong, Manchin responded, “I have a difference of opinion.”
Blanch told CNN that OPEC is not likely to do what Biden is asking them to do because they have no incentive.
“OPEC is not going to accelerate. They like their plan. They think their plan is working,” Blanch said. “OPEC is not interested in pushing prices back down to $60 a barrel. They have zero interest.”