Analysts at a top U.S. bank are warning that nationwide gas prices could skyrocket from their current $4.589 average per gallon to more than $6 per gallon by the end of summer.
Natasha Kaneva, head of global oil and commodities research at JPMorgan, wrote in a research document that the U.S. was in for a “cruel summer” as gas prices were expected to continue smashing records.
“With expectations of strong driving demand — traditionally, the U.S. summer driving season starts on Memorial Day, which lands this year on May 30, and lasts until Labor Day in early September — U.S. retail price could surge another 37% by August to a $6.20/gallon national average,” she wrote.
“Typically, refiners produce more gasoline ahead of the summer road-trip season, building up inventories,” the analysts said. However, over the last several weeks, “gasoline inventories have fallen counter seasonally and today sit at the lowest seasonal levels since 2019.”
Gas prices continue to break records on a continual basis during Democrat President Joe Biden’s administration, with the average price for a gallon of gas being more than $4 per gallon in every state across the U.S.
The news comes as some places have already started to experience gas prices of more than $6 per gallon, including Los Angeles County and Orange County.
Twenty Republican senators, led by Sen. Ted Cruz, (R-TX), sent a letter to Commerce Secretary Gina Raimondo this week calling for the National Marine Fisheries Service (NMFS) to quickly issue permits that are needed to ramp up production from existing offshore federal oil and gas leases.
“While the Biden Administration and Members of Congress fault the domestic oil and gas industry for sitting idle on over 9,000 drilling permits and millions of acres in ‘inactive leases’, NMFS’s permitting delays represent one example of the Administration’s de facto ban on new drilling – impeding domestic oil and gas investment, exploration, and production,” the letter states.
“Specifically, we are aware that NMFS has a backlog of applications for ‘Letters of Authorization’ (LOA), which federal oil and gas lessees need in order to perform the specific geological surveying necessary to develop their leases located on the federal U.S. Gulf of Mexico Outer Continental Shelf (OCS),” the letter continues. “We understand some pending LOA applications have been with the agency for well over 100 days, whereas NMFS has historically approved LOA applications within 2 to 4 weeks.”
Biden previously deflected any blame for rising gas prices, saying that he couldn’t “do much right now” because “Russia’s responsible.”