Posted on 06/07/2022 10:31:52 AM PDT by Mount Athos
Consumers desperate for relief from the scourge of sky-high gasoline prices won’t get it soon.
In an update to their outlook for oil prices over the next 12-18 months, the team at Goldman warned that they now expect oil prices to rise to nearly $140 a barrel as early as this summer.
But to American consumers, it will feel more like oil is trading at $160 a barrel as limited capacity at the refineries that process crude into petroleum products like gasoline and jet fuel continue to struggle to ramp up their processing capacity swiftly enough to satisfy growing demand.
The price of oil has already surged more than 50% so far this year, driving the average price of gas in the U.S. to a record of nearly $5 a gallon, according to AAA. On Tuesday, the international and U.S. crude oil benchmarks — were trading near $120 a barrel.
And although the longest global oil supply deficit on record ended in April after nearly two years, the Goldman team expects a resurgence in Chinese demand will more than offset the surprising durability of Russian crude exports.
While OPEC+ agreed during its June meeting to boost production, Currie writes that members’ ability to aggressively accelerate drilling faces several challenges. One is that drilling activity has languished at half of its level from the first quarter of 2020 for the past 18 months, and any surge in production would likely take months to implement.
Another is the lack of an exemption for Russia from its OPEC+ quota at the June meeting.
As MarketWatch reported earlier this month, the lack of sufficient spare capacity represents a binding constraint for OPEC+ members trying to pick up the slack as Europe turns away from Russian crude.
(Excerpt) Read more at marketwatch.com ...
traffic will be minimal if people can’t afford gas!
At what price do the torches and pitchforks come out?
“I have a trip to Colonial Williamsburg planned for August.”
No big deal...if you live in Newport News.
150 a barrel
I'd guess around $15, they know their boundaries and the sheeple reaction.
It will never happen.
I agree that at that price it will have an immediate effect.
Some peeps are laboring under the misconception that $5 - $6 range is transitory and that things will return to normal before long. So they keep spending.
But to your point...at $8 /gal the cost impact is immediately and painfully apparent when 6 figures appear at the pump. Those long round trip drives are really going to hurt.
(Paying for the necessities is going to get harder and harder, and eat into whatever disposable incomes people once had. This belt tightening is going to ripple throughout the economy making jobs less secure. A big mess in store for us. Elections sure do have consequences.)
Agree. The masses are too passive and fearful.
$5.49 a gallon in DC. Until last week prices were sort of restrained. Now they are socking it to the deep state.
If you live in some blue crap hole city, riding gas tax subsidized mass transit, you’re probably more worried about any increases down at the dispensary.
I wish I did. But I live a bit further away. It’s definitely going to cost me to get there.
$4.69 in Minot, ND. You’re well ahead of us.
You really have to be clever to work at Goldman Sachs. First you finance a corrupt demented politician to become President. As predicted the lowlife and his cabal assault the fossil fuel industry. No drilling ,no fracking , no pipelines, no new refineries, no nuclear, no coal. Then you get to predict that the price of oil, gas and electricity skyrockets, the economy contracts and inflation soars. What would America ever do without Goldman Sachs?
We fill up about once a week. Last week I paid $5.04. Today it was $5.29.
Accurate summary.
5.56mm
Biden: Jimmy Carter in diapers.
$8 gasoline means $10 diesel. What does that do to trucking? Farming? Construction? Tesla doesn’t make electric tractors, combines, or bulldozers.
Expect $10/gallon at the pump by election day.
Goldman is being conservative here.
Unless Brandon surrenders to Russia, the continuation of sanctions and war will lead to about $200/barrel WTI crude oil prices, and about $20/mcf natural gas prices, all by around Nov 1.
A 20-gallon fill-up for your car at the service station will be about $200.
Like ebola, this should burn out by the end of summer. If it does not people have a hell of a lot more money to burn than I ever thought they did. I don’t and I have previously considered myself able to weather financial storms better than most. My discretionary spending has all but collapsed.
Any deadly virus runs out of victims.
In the summer of ‘08 I took a motorcycle trip from here to Whiteman AFB up through the lakes area of the Ozarks in Missouri. IT WAS EERILY DEAD. No cars on the roads, no boats on the water, only a few groups of people in campsites sitting around or swimming. You could see the recession coming. It was glaring.
In September of ‘08 I went to Oregon to fly an airplane back to Texas. Same thing, dead and long faces and empty air space.
I paid $63 for 12 gallons of gas to run the mower and trimmer yesterday. It got my attention.
History may not repeat but it usually rhymes.
Yes, but the cabal of people responsible for this outrage needs to be identified before appropriate punishment is meted out
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