Gasoline prices in the US continue to rise sharply?

CNBC There was an article: “Oil peaked at $120/barrel despite OPEC+ agreement”. Opening the first session of the week, Brent oil was priced at more than 121 USD/barrel, US WTI oil also reached the highest level in the past 3 months at 120 USD. The reason is because the market realizes that even if OPEC + increases production, only a few members of the group can increase capacity. So according to JPMorgan, the group will gain 160,000 barrels in July and August 170,000 barrels.

CNN said that there are 10 states with gasoline prices at 5 USD/gallon (about 30,000 VND/liter) or higher; Most recently, there were 2 more states, Michigan and Indiana. Others are only a few cents away from this milestone.

Petroleum expert Andy Lipow forecast that the average level of 5 USD for the whole US could come in about 10 days. The increase in crude oil price is the main reason for the increase in finished gasoline. In addition, greater Americans’ need to travel also contributes. While the supply is increasingly choking.

Gasoline prices in the US continue to rise sharply?  - Photo 1.

A gas station in America. (Photo: Reuters)

Over the past several weeks, the story of gasoline has been repeated many times, but the question now is when will it cool down? Because according to Moody’s forecast, if crude oil continues to increase in price and climbs to 150 USD/barrel, the US economy will fall into recession.

‘s financial page Yahoo! Citi and Barclays said that two banks, Citi and Barclays, have increased their forecasts for oil prices due to the impact of oil sanctions from Russia as well as delays in extending the Iran nuclear deal. This means no more oil exports from Iran.

Citi forecasts Brent oil prices in the third and fourth quarters of $99 and $85 per barrel, respectively. According to Barclays, Brent will stay at $111/barrel this year and next year. And WTI oil is 108 USD for the whole year.

As for finished gasoline, news agency CBS quotes JP Morgan commodities analyst Natasha Kaneva that the US$6.20/gallon mark across the US will happen before August. The US is expected to produce 9.1 million b/d of gasoline by August. This summer through refineries and also imports. However, actual demand could climb to 9.7 million barrels.

Because of the high increase in gasoline prices, Wall Street is also forecasting that the US Federal Reserve (FED) may have to increase interest rate milestones by 0.5 percentage points in the next 3 meetings this month, this month. July and September. Because according to them, only then, US inflation can be partly controlled.

Le Tuyen

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