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Risk of $5 gas ‘can no longer be missed’, JP Morgan warns amid Iran war oil shocks

The Independent·Andrea Cavallier·24 days ago
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#comments#prices#fuel#gallon#crude#analysts
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Americans could soon see gas prices hit $5 a gallon, according to analysts at JPMorgan Chase & Co. The ongoing war with Iran is no longer just driving up crude oil prices – it is now squeezing global fuel supplies in ways that could increase the cost of gasoline , diesel and jet fuel, the analysts warned in a note Friday, according to Bloomberg . “If refinery runs continue to be constrained by limited supplies of crude, fuel prices, rather than crude prices, may become the ‘primary transmission channel for demand destruction,’” Natasha Kaneva and a team of analysts said in the note. “In that scenario, crude could plausibly stabilize around $100 [a barrel] even as product cracks widen sharply. The next phase of the shock then may look less like a classic crude spike and more like a refining and end-user fuel crunch.” “This likely helps explain why US gasoline prices are at [$4.55 a gallon] and why the risk of $5 gasoline can no longer be dismissed,” the analysts added.…

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