Gas Price Prediction 2022: Why are Gas Prices high?

 


Gas Price Prediction 2022: OPEC Pushes Oil Prices Higher, again

 

Gas Price Prediction 2022: Crude Oil price is up 13% since late September. Prices went up as OPEC cut production and pushed oil prices higher again. Nation Gas prices are likely to rise anywhere between 10-15%.

Gas Price (Average) in the United States has risen from $3.74 to $3.91 in the last 30 days.

Gas Price is below $3.5 in 14 States, it was in 20 States a fortnight ago. Gas Price is retailing above $5 in 6 States, the same as a fortnight ago.


Gas prices continued to rise over the last fortnight

  • First, Gas prices rose because of supply disruptions in refineries in the United States.
  • On October 5th, OPEC cut oil supply by 2 million barrels a day pushing Brent Crude Oil higher from $91 to $100
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Gas Price Prediction 2022: Why are Gas Prices high?

  • US Oil Production had fallen in 2020 and is yet to recover. In 2019, the US produced 4485 million barrels of oil. This fell during the covid period to nearly 4000 million barrels in 2021. Saudi Oil production too fell by nearly 7%
Gas Price Prediction 2022
  • The Federal Reserve’s balance sheet expanded at a rate of $320 B per month in 2020 and about $100 B in 2021. While this staved a crash in the economy, it has also created a demand which cannot be met by Oil-producing nations and hence the increase in price
  • Lastly, the war in Ukraine has resulted in sanctions against Russia and is also likely to see Russia reducing its output in the next few months.

US Inflation Forecast 2022

Gas Price Prediction 2022: Crude Oil Forecasts for the next 12 Months

According to the US Energy Information Agency EIA

  • The rise in prices of Crude Oil is due to a lack of sufficient supply of Crude Oil from OPEC, US Production slowdown due to COVID in 2020, and a range of International problems including the Russian Invasion of Ukraine
  • Brent Crude averaged $104 per barrel in 2021. It is predicted to average at $98 per barrel in the fourth quarter this year.
  • In 2022: The retail prices of gasoline are expected to go down to $3.6 per gallon. The retail prices of diesel are expected to go down to $4.9 per gallon.
Gas Price Prediction 2022: Crude Oil Crashes below $85, Gas Prices Likely to fall further

Gas Prices Prediction 2022: How have Gas Prices Changed over the Year?

According to data compiled by the AAA

  • Gas prices have increased over the last 7 days
  • Gas prices have increased over the 1 Month
  • Gas prices have increased over the last 12 months
Gas Price Prediction 2022: OPEC Pushes Oil Prices Higher, again

Which States Have the Lowest Gas Prices? (< $3.5)

  1. Texas
  2. South Carolina
  3. Arkansas
  4. Georgia (Lowest)
  5. Louisiana
  6. Mississippi
  7. Tennessee
  8. Alabama
  9. Missouri
  10. Virginia
  11. Rhode Island
  12. New Hampshire
  13. Florida
  14. Connecticut

Which States have the Highest Gas Prices? (> $5.0)

  1. California (Highest)
  2. Hawaii
  3. Nevada
  4. Oregon
  5. Washington
  6. Alaska

Future Gas Prices Predictions

The average National Gas Price is likely to range from $3.4 and $4.3. Once the price reaches $4.3, demand is likely to trend lower.

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Gas Price Prediction 2022

Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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