JPMorgan predicts gas will reach $6 per gallon soon, Arizona on its way there: 'Gas prices ... break records'

Economics
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Gas prices will reach $6 per gallon soon, JPMorgan said. | Skitterphoto/Pixabay

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As gas prices continue to set new records each day, multinational investment bank JPMorgan predicts that national gas prices will surpass $6 per gallon by the end of the summer, according to Fox Business.

The average price at the pump in Arizona is close to reaching $5 per gallon. Republicans see American energy independence as a way out of the pump price misery; some feel that Pres. Joe Biden has a different idea, as he recently canceled federal oil leases.

For the first time ever, the average cost for a gallon of gasoline surpassed the $4 mark in all 50 states on Tuesday. AAA reported that the trend is being driven by the high cost of crude oil, which is currently priced at approximately $110 per barrel. 

Gas prices are squeezing Americans' wallets. As of Wednesday, the national average price per gallon of gas was $4.57 – $1.53 more than a year ago.

In Arizona, Wednesday's average of $4.83 per gallon is 26 cents more than a month ago and $1.69 more than a year ago.

"Gas prices are now above $4 a gallon in every single state and continuing to break records," House Republicans said in a recent Twitter post. "Enough is enough. President Biden must unleash American energy dominance to ease this pain at the pump." 

Gas prices are not going to drop and could jump another 37% by August, hitting a predicted national average of $6.20 per gallon, according to JPMorgan, as reported by Fox Business.

JPMorgan analysts noted "expectations of strong driving demand" throughout the summer driving season, which spans from Memorial Day until Labor Day, according to Fox Business.

"Typically, refiners produce more gasoline ahead of the summer road-trip season, building up inventories," the analysts said. But, since mid-April, "gasoline inventories have fallen counter-seasonally and today sit at the lowest seasonal levels since 2019."

During his first week as president, Biden signed an executive order temporarily suspending new oil and gas leases on federal lands, according to Fox Business. The U.S. Department of the Interior (DOI) recently canceled oil and gas lease sales for over one million acres in Alaska's Cook Inlet and the Gulf of Mexico, amid record-high gas prices. 

While the DOI cited "lack of industry interest," Steve Milloy, a former Trump administration EPA transition member and founder of JunkScience.com, blamed the current president. 

"I blame Biden for all lack of production," Milloy told FOX Business recently. "He has scared away investment." Milloy further suggested that the president will find "any excuse to not drill. They even tried to use the social cost of carbon decision to stop leasing."

Only 39% of Americans approve of Biden's job as president, while 56% disapprove, according to a recent NBC News poll. The survey was taken from May 5 to 7 and May 9 to 10 among 1,000 adults; 790 were registered voters. The poll also showed that 33% of Americans approve of Biden’s handling of the economy, while 62% disapprove.

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