Summer Gas Prices May Hit $5: Expert Warns

US gas prices are poised for a significant increase this summer, with projections suggesting a national average could reach $4.75 or even $5 per gallon. This outlook comes despite recent drops in crude oil prices, influenced by market optimism surrounding ongoing diplomatic processes. Rebecca Babin, a senior energy trader, explains that while traders are pricing in the future resumption of supply flows, the immediate reality remains a tight market for gasoline, jet fuel, and diesel.

Even if diplomatic efforts lead to a resolution within the next month and a half, the US will continue to experience constrained fuel supplies. Babin emphasizes that current low inventories and a lag in the return of normal flow patterns mean prices are unlikely to return below $4 per gallon until at least September or October. The summer driving season, a period of high demand, exacerbates these conditions, making a surge to $5 per gallon a distinct possibility if supply disruptions persist.