Gas 'swimming' in high prices for a while: Analyst
The national average for a gallon of gas hit a fresh record on Wednesday
Gas 'trending in the wrong direction': GasBuddy analyst
GasBuddy head of petroleum analysis Patrick De Haan provides insight into record-high gas prices and reveals his forecasts for how high prices at the pump will climb.
GasBuddy head of petroleum analysis Patrick De Haan provided insight into record-high gas prices, warning on Wednesday that "we’re going to be swimming in these high prices for a while."
Speaking on "Varney & Co." on Wednesday, De Haan also revealed his forecasts for how high prices at the pump will climb, arguing that they could reach a national average of $6 a gallon in the coming months, but "what seems like more of a guarantee is that $5 mark."
De Haan provided the insight as the national average for a gallon of gasoline hit a fresh record of $4.95, which is nearly 30 cents higher compared to the week before and an increase of 63 cents compared to the prior month, according to AAA.
Gas is "trending in the wrong direction," De Haan stressed on Wednesday, adding that he is "afraid we’re one refinery issue or one major hurricane away from being able to see" gas prices reach a national average of $6.
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GasBuddy analyst Patrick De Haan warns that there won't be much relief at the pump until at least the fall. (PatrickDehaan.com / iStock)
According to AAA, 16 states currently have an average of over $5 for a gallon of gas.
"That’s been the story, just not enough gasoline to meet the insatiable demand," De Haan argued, explaining what he believes is behind the soaring gas prices.
As for diesel prices, De Haan argued that a national average above $6 a gallon "is certainly a very strong possibility."
On Wednesday, the national average for diesel was $5.71, according to AAA.
De Haan stressed that any refinery disruption or hurricane can impact diesel prices as well as the continued "fallout from Russia’s invasion of Ukraine."
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"It’s not just U.S. refineries that have shut down over the last few years, it’s European refiners and keep in mind Europe consumes a lot of diesel fuel," he explained.
"That’s part of the problem which is pushing diesel prices up and I think $6 a gallon, that’s probably better than a 50/50 shot at this point."
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He warned that he does not foresee much relief until at least the fall "unless Americans start cutting back or if we see an economic slowdown or if Russia wakes up and if Putin decides to exit Ukraine."