Goldman Sachs Says That Fuel Prices At The Pump Are Going To Get A Lot Worse | Carscoops carscoops
but according to Goldman Sachs, the future looks even worse. Economists at the investment banking group have predicted that it’ll feel like there’s roughly a 34 percent bump in prices later this year., the firm said on Tuesday that while it expects the average price for a barrel of oil to hit a cap somewhere around $140 later this year, to the consumer at the pump it’ll feel more like $160. That’s a 34.45 percent increase over the $119 cost associated with a barrel today.
Of course, that could end up putting the national average somewhere around $6.70 per gallon. Keep in mind too that we’re talking about regular 85 or 87-octane gasoline. The national average right now for premium, which more cars are running these days, is $5.55. A 34 percent bump on that price would make the new total $7.43.“A large spike in prices remains quite possible this summer when demand seasonally reaches its peak,” Jeff Currie, a chief commodities strategist from Goldman Sachs said.
Instead, much of the crunch comes from a lack of refining capacity or the ability to turn crude oil into gasoline and diesel. In fact, the analysis specifically says that there’s “an unprecedented refining shortage” right now. What seems like an all-new fuel crisis is pushing action from all over the system including states which are suspending their fuel taxes.that will last until the end of the year and ultimately cost the state more than $500 million in revenue.