How high will gas prices go?
Philip Rossetti, a senior fellow of energy studies at the R Street Institute, said the gas price spike has many stubborn causes.
“Russia is a major oil and gas producer, and the past month has been ringing all the alarm bells that you can’t separate your trade relationship from your human rights stance,” he told the Washington Examiner. “As Europe and others are trying to get off Russian oil, this is raising demand from other suppliers.”
He added, “Combine that with the usual summer demand increases, post-COVID travel demand, OPEC refusing to increase output, and China easing lockdowns, and it’s all high demand and short supply.”
Nor does Rossetti see any relief in sight, unless there is a concerted effort to increase oil production.
“This dynamic isn’t going away anytime soon, and the best hope for near-term relief is increased production from the U.S. and its allies,” he said.
The gas crunch happened at a time when America was already experiencing serious supply chain problems, and it only seems to have added additional costs and complications.