J.P. Morgan forecasts a ‘Cruel Summer’ of high gas prices above $6

In a research titled “Cruel Summer,” J.P. Morgan anticipated that the national average for regular gas in the United States might surpass $6.00 per gallon in the coming months.

For the tenth day in a row, the national average for regular gas has risen, reaching $4.589 on Thursday.

This is a 2-cent increase in the previous day, a 17-cent increase in the previous week, and a roughly 49-cent increase in the previous month. Furthermore, according to J.P. Morgan, it will only get worse in the following months, reaching $6.00 per gallon nationwide.

J.P. Morgan commodities research head Natasha Kaneva warned this week. “With expectations of strong driving demand … US retail price could surge another 37% by August to a $6.20/gal national average.”

Business Insider reports that:

The outlook was released only days before Memorial Day, the customary kickoff to the summer driving season, which lasts through Labor Day in early September.

The national average retail price of gas surpassed $4.50 a gallon for the first time on Tuesday, resulting in a 37% increase. According to Kaneva, the price was up roughly $0.50 from a month ago and a “huge rise” from $3.04 a gallon on the same day in 2021.

No state in the country has an average gas price below $4.00, and California is the only one with a price much above $6.00 — $6.061 as of Thursday. Other states with costs above $5.00 per gallon include Hawaii, Alaska, Washington, Oregon, and Nevada.

Florida Governor Ron DeSantis (R) forecast last week that under President Joe Biden’s guidance, petrol prices may reach $6.00.

“They’re canceling oil and gas leases in places like Alaska and the people, the people that have to fill up their gas tanks are the ones that are paying the price for those bad policies,” he stated during a press conference on Wednesday, predicting worse costs in the future.

“I think you’re gonna see it, you know, unless they reverse course, you’re gonna see it over $5 a gallon for unleaded, and in places like California, it’ll probably like $7.00 or $8.00 because of all the taxes they have. That is gonna be a huge, huge hit to a lot of working people,” he said.

Due to the Biden administration’s constant mismanagement, he added, it’s “very possible that Biden plunges this country into a recession.”