How High Will US Gas Prices Go?

This weekend Americans were surprised by new increases in fuel prices. Yesterday, Saturday, June 11, the average price per gallon reached a new milestone by breaking the barrier of $5 dollars.

In some states of the country the price of gasoline already exceeds this value. In Washington, Oregon, Nevada, Alaska, Illinois and Hawaii, the gallon is over $5.5. In the meantime, in California exceeds $6 dollars. In areas like Humboldt, the price is $6.83 dollars, only ¢17 cents below $7 dollars.

Faced with this scenario, the question that turns in the minds of consumers focuses on how much more the prices of this fuel in the country can skyrocket.

Specialists agree that the excess demand for gasoline has made prices rise throughout the country. The lack of fuel supply worldwide, as a result of the conflict between Russia and Ukraine, has favored its appreciation.

Although the United States does not depend in significant quantities on Russian oil, the restriction of the European Union to ban fuel shipments from the Eurasian country caused oil prices to soar in global markets.

The price of a barrel of crude oil is currently trading above $120 dollars, when a month ago its value fluctuated below $100 dollars. Goldman Sachs forecasts point to the price of a barrel of Brent crude, which is the benchmark for oil traded in Europe, be $140 dollars between July and September.

With the summer travel season just beginning, gasoline demand is expected to rise even more. The global head of energy analysis for OPIS, which tracks gasoline prices for AAA, told CNN that He anticipates that by the end of this summer the average gallon will be close to $6 dollars.

In its most recent report published on Friday June 10 by the US Bureau of Labor Statistics, year-on-year inflation stood at 8.6%, which surpassed the record of 8.5% of Marchand 8.3% in April and is the highest price rise since 1981.

During last May, energy prices had an increase of 3.9% after having a slight fall in the previous month. Within the industry, gasoline increased 4.1% in the last month.

This new report will probably lead the Fed to take new measures on interest rates to try to reduce the rise in prices. The next question may focus on how long consumers can take and what other measures they can take to continue driving, amid some projections of a recession in the country in the short term.

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