Gas Price Prediction 2022: Gas Prices Fall below $3.5 as Crude Price remains below $85

Gas Price Prediction 2022: With US Elections coming to an end, Crude prices have headed lower, falling from $95 on the day of the election to about $85 by end of November

Gas Price (Average) in the United States has fallen significantly over the last few weeks and is marginally higher than in November 2021.

Gas Price is below $3 in 5 States, this is the best in a year

Gas Price is below $3.5 in 14 States, this has remained steady for a month. Gas Price is retailing above $5 in just 1 State

---

Gas prices have fallen significantly over the last few weeks

• China’s cycle of lockdowns has squeezed demand
• Biden’s plan to release more oil from the strategic reserve prevented oil prices from rising higher
• Russia is probably selling Crude oil at a 40% discount to China and India

However, Gas prices are likely to rise higher over the next few weeks

• EU will place a bank on Russian Searborne Oil Imports
• OPEC+ is likely to cut production even more.

Gas Price Prediction 2022: Why are Gas Prices high?

• US Oil Production had fallen in 2020 and is yet to recover. In 2019, the US produced 4485 million barrels of oil. This fell during the covid period to nearly 4000 million barrels in 2021. Saudi Oil production too fell by nearly 7%

• The Federal Reserve’s balance sheet expanded at a rate of $320 B per month in 2020 and about $100 B in 2021. While this staved a crash in the economy, it has also created a demand which cannot be met by Oil-producing nations and hence the increase in price
• Lastly, the war in Ukraine has resulted in sanctions against Russia and is also likely to see Russia reducing its output in the next few months.

US Inflation Forecast 2022

Gas Price Prediction 2022: Crude Oil Forecasts for the next 12 Months

According to the US Energy Information Agency EIA

• The rise in prices of Crude Oil is due to a lack of sufficient supply of Crude Oil from OPEC, US Production slowdown due to COVID in 2020, and a range of International problems including the Russian Invasion of Ukraine
• Brent Crude averaged $104 per barrel in 2021. It is predicted to average at $93 per barrel in the fourth quarter of this year (Forecast has been downgraded by $5).
• In 2022: The retail prices of gasoline are expected to average at $3.78 per gallon until December 2022. It is expected to fall to $3.57 in 2023.

Gas Prices Prediction 2022: How have Gas Prices Changed over the Year?

According to data compiled by the AAA

• Gas prices have fallen over the last 7 days
• Gas prices are fallen over the last 1 Month
• Gas prices have increased marginally over the last 12 months

Which States Have the Lowest Gas Prices? (< $3.5)

< $3.0

1. Texas
2. Oklahoma
3. Arkansas
4. Mississippi

$3 to $3.5

1. Georgia
2. Alabama
3. Missouri
4. Louisiana
5. Tennessee
6. Kansas
7. Wisconsin
8. South Carolina
9. North Carolina
10. Kentucky
11. North Dakota
12. Minnesota
13. Virginia
14. Florida
15. North Carolina
16. Ohio
17. South Dakota
18. West Virginia
19. Wyoming

Which States have the Highest Gas Prices? (> $5.0)

1. Hawaii

Future Gas Prices Predictions

The average National Gas Price is likely to range from $3.4 and $4.3. Once the price reaches $4.3, demand is likely to trend lower.

National average continues to drop, $3.517/gal, still tracking close to the fast case model, on our way to lower #gasprices. Most common price $3.39/gal, but is just days away from falling to $2.99/gal! Median is $3.43/gal. pic.twitter.com/803d9doeXQ

— Patrick De Haan ⛽️📊 (@GasBuddyGuy) November 28, 2022

Stock Market, Cryptocurrency, Political and NBA Forecasts

Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.