Lagging Demand Won’t Keep Gas Prices From Soaring Again
But experts are now warning that consumers should not be lulled into a false sense of confidence thinking the cuts will last. In an interview with Yahoo Finance Live, Rebecca Babin, senior energy trader at CIBC Private Wealth, has warned that two factors could put upward pressure on gas prices: reserves and sanctions.
“Even if demand dips [for gasoline], supply will dip with it, and I don’t see a significant pullback. If anything, I think that gasoline prices on the national average will probably rise from here,” Babin has said.
Babin notes the giant SPR release of oil reserves by the Biden administration is set to end in November while Europe is due to implement sanctions on Russia in December. She argues that both factors could cut oil supply, pushing prices higher and rippling through to gasoline. Compounding matters is the fact that this will coincide with the heating oil season in North America, meaning refiners will be more inclined to make crude into heating oil instead of gasoline.
(Enjoy it while you can I suppose)
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