CNN: GasBuddy Predicts $4 Gas Could Be Here By Memorial Day

EXCERPT:

EGAN: “You know, this is really all about supply and demand and Covid. When Covid first erupted in spring 2020, we saw Russia and OPEC and U.S. oil producers slash their production by record amounts. And that made sense because no one was driving. No one was flying. The world was kind of shut down. Flash forward, we’ve seen demand basically come back to pre-Covid levels but supply has not kept up. And so that’s why Gasbuddy, which is an app that tracks prices and demand, they’re calling for gas prices to rise next year. They see a 2022 average of $3.41 a gallon, that's up from around $3 this year. They think gas prices are going to peak in May at $3.79 a gallon, essentially right as everyone is heading out for the summer, Memorial Day weekend, we could be seeing gas prices flirting with $4 a gallon before they fall sharply later in the year. Now, this would unwind some of the recent progress we’ve seen on the gas front. The national average is currently $3.28 a gallon. That’s not cheap. It’s up by about a dollar from a year ago, but it is down 14 cents from the peak we saw in early November. We should note, there is a lot of uncertainty here. And others are calling for gas prices to drop. Citigroup has predicted and warned their clients that there’s going to be what they called a, quote, 'radical drop' in energy prices. The Energy Department’s research arm is calling for an average of $2.88 a gallon next year. That would be down. I think at the end of the day, Amara, these are all just forecasts, and Covid has shown it is really, really hard to accurately forecast anything in today’s economy.”