Gas Price Prediction 2023: Gas Prices RISE as Crude Prices rise above $85

Gas Price Prediction 2023: Global Crude Oil prices have begun to rise again

Gas Price (Average) in the United States has risen over the last few days as Crude prices head higher

Gas Price is below $3 in 2 States, it was 15, two weeks ago

Gas Price is above $4.0 in 3 States, this is up from 2 states, two weeks ago

While Oil prices have fallen below $3.5 in most States, Crude oil prices are rising again, up 12% in the last 3 weeks. Here is why Crude Oil prices are rising

  • China’s lockdowns are over
  • Biden has begun to purchase Oil to fill the strategic reserve
  • EU has capped Russian Oil Prices

Latest analyst forecasts suggest that crude oil prices could rise higher during the year.

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Gas Price Prediction 2023: 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
  • 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.
  • Lastly, OPEC countries cut production to push prices even higher

Gas Price Prediction 2023: Why did Gas Prices fall in the second half of 2022?

  • The Federal Reserve cut interest rates in an attempt to reduce inflation, this had a bearing on the price of all commodities
  • Russian production remained high but a variety of sanctions pushed Russian prices of crude lower. Countries like India and China purchased Russian oil at huge discounts
  • China’s COVID lockdowns squeezed demand for Crude Oil pushing downward pressure on Crude Oil prices
  • The US increased the supply of Crude Oil in the market from its strategic reserve placing downward pressure on OPEC Oil production cuts

US Inflation Forecast 2023

Gas Price Prediction 2023: Crude Oil Forecasts for the next 12 Months

According to the US Energy Information Agency EIA

  • Oil Inventories are expected to be higher than predicted earlier by end of 2023
  • Brent Crude averaged $104 per barrel in 2021. It is predicted to average at $92 per barrel in the first quarter of this year (Forecast has been downgraded by $3).
  • In 2022: The retail prices of gasoline are expected to average at $3.51 per gallon in 2023. This is lower than predicted earlier but higher than the prices in December 2022.
Gas Price Prediction 2023: Gas Prices Fall below $3.5 as Crude Price remains near $85
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Gas Prices Prediction 2023: How have Gas Prices Changed over the last 12 months?

According to data compiled by the AAA

  • Gas prices have risen over the last 7 days
  • Gas prices rose over the last 1 Month
  • Gas prices have risen over the last 12 months
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Which States Have the Lowest Gas Prices? (< $3)

< $3.0

  1. Texas
  2. Mississippi

Which States have the Highest Gas Prices? (> $4.0)

  1. Washington
  2. Hawaii
  3. California

Future Gas Prices Predictions

The average National Gas Price is likely to range from $3.4 and $3.9. Once the price reaches $4.0, demand is likely to trend lower. In the meanwhile, rising US crude production will gradually tip the scale for consistently lower gas prices by 2024.

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Gas Price Prediction 2022

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.