Forecasters Predicting Gasoline Prices Will Rise Even Higher

Forecasters Predicting Gasoline Prices Will Rise Even Higher
Rigzone's regular energy prognosticators take a look at gasoline prices, Congress action, crude production rates, and more.

(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author)

In this week’s preview of what to watch in oil and gas markets, Rigzone’s regular energy prognosticators take a look at gasoline prices, Congress action, crude production rates, and more. Read on below to find out the specifics.

Rigzone: What developments/trends will you be on the lookout for this week?

Phil Kangas, Advisory Leader for Natural Resources & Mining, Grant Thornton LLP: According to AAA, gasoline prices nationwide stand roughly $1.20 above where they were this time last year. Forecasters are now predicting these prices will rise even higher, despite efforts by the Biden administration to lower summer gasoline prices with increased use of ethanol. In Washington, the U.S. House and Senate each held committee hearings earlier this month on the rising price of gasoline and its effect on American consumers. As both chambers of Congress return from spring recess … it will be worth watching to see if any substantive legislative action follows.  

Hillary Stevenson, Director, Industry Relations at oil and gas data firm Validere: U.S. Crude Production rose 100,000 barrels per day to 11.9 million barrels per day last week. Production forecasters expect production to reach anywhere from 12 to 12.9 million barrels per day by the end of the year. Production increases are anticipated for the back half of the year, especially given the June oil and gas drilling lease sales on public lands announced by the U.S. Department of Interior. Most of the acreage on offer is located in Wyoming. U.S. production is being closely watched with global supply hindered by outages in Libya, CPC pipeline damage, and continued official and voluntary sanctions on Russian oil.

To contact the author, email andreas.exarheas@rigzone.com


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