Bank of America has issued a dire warning about how much higher the already sky-high gas prices are likely to rise by next summer, while a testy Democratic senator says to forget OPEC–we can fix energy prices ourselves.
Bank of America warns already sky-high gas prices to soar to stratospheric levels
With America already experiencing significant pain at the pump, Bank of America believes this is only the beginning, and by next June – the start of the summer driving season – the already sky-high prices are going to soar to stratospheric levels.
As of November 4, 2021, AAA’s national average was $3.4154 a gallon of regular unleaded. Only a day earlier it reached $3.40, a seven-year high, CNN reported.
California is already at $4.61 in Hawaii at $4.33, with several states approaching $4 per gallon gasoline including Nevada and Washington, followed by Utah, Alaska, Idaho, and Illinois.
Bank of America’s dire prediction on gas prices
On Wednesday, US crude dropped 3 percent to around $81 per barrel. However, Bank of America is now predicting that Brent crude oil, the main driver of gasoline prices, will soar to $120 per barrel by June 2022 – the start of the summer driving season when demand increases. $120 a barrel is roughly 45 percent higher than current prices.
Bank of America’s head of global commodities, Francisco Blanch, told CNN: “It’s very easy for prices to shoot up when demand conditions are tight like they are now.”
Last June, Blanch predicted where gas prices have risen to currently.
“Back then, people thought we were crazy,” Blanch said. “. Now, here we are. We are generally still quite bullish.”
Top Democrat Senator says US can solve the problem of high energy prices apart from OPEC
Senator Joe Manchin (D-WV), who has constantly been a thorn in the side of the progressives in the Democratic Party, is pushing back against President Joe Biden’s assertion that the Organization of the Petroleum Exporting Countries (OPEC) is responsible for America’s high gas prices, the Daily Wire reported.
During an interview with Fox, Manchin suggested the United States has the ability to solve the high cost of fuels on its own.
“Well, I say that we can basically do more for ourself,” Manchin said. “We have been energy independent for the first time in 67 years.”
Manchin was referring to the US reaching energy independence under Trump before many of the policies were rolled back by the Biden administration.
“Why can’t we do more?” Manchin asked. “Why can’t we produce more?”
“We have got plenty of natural gas,” Manchin asserted. “My state, beautiful state of West Virginia, has an ocean of natural gas under it. If they just let us build a pipeline, we could get the product to market.”
“And why don’t we do more drilling, and why don’t we do more basically production in the United States?” Manchin continued. “I’m not depending on OPEC. I’m not depending on other countries for my energy anymore. We know how to do it. We have the technology. We should be resilient, relying on ourselves.”
Manchin was asked if he thought Biden was wrong in his view that OPEC is the problem.
“I have a difference of opinion,” Manchin replied, without criticizing the president.
