As anticipated by the Biden administration, gas costs will fall below $3 per gallon by the end of 2021. Gas costs, on the other hand, had more than doubled by July 2022, seven months after President Joe Biden assumed office.
Oil output is expected to be higher than demand, according to Biden's Energy Information Administration (EIA), which was quoted by CNN.
With gas prices finally starting to fall, fresh government estimates anticipate that this trend will accelerate significantly in the months ahead.
Gasoline prices are expected to fall to $3.01 a gallon in January, the US Energy Information Administration reported on Tuesday. In 2022, the average price of a gallon of gas is predicted to be $2.88.
Omicron oil is getting increasingly popular, and the EIA expects global oil supply to expand faster than demand next year. Over the past 18 months, demand for Covid-19 has increased, but production has been unable to keep up. This would represent a complete reversal of the trend.
Not only did Biden's EIA forecast turn out to be completely inaccurate. When it comes to inflation, Citigroup posited that “the energy boom” that was “fanning the flames of inflation is over.” Biden's administration will always be marked by inflation. CPI hit a 40-year high in May, while the Bureau of Labor Statistics reports gas prices have risen by more than 48% in the past year.
Not all of the big banks got the gas prices wrong. According to CNN, JPMorgan expected petrol prices to rise to $5 per gallon as a result of an increase in the oil price.
According to JPMorgan, gas prices averaged $5 in June. Now that inflation is taken into consideration, Biden's EIA predicts that American gas prices would rise by $450 by 2022.
Earlier this year, JPMorgan predicted that petrol prices might rise to as much as $6 per gallon by the end of the summer.
The preceding is a summary of an article that originally appeared on BREITBART.
