Colder winter could push oil prices up to $ 100 a barrel
Charleston, WV (WOWK) – The last thing we want or need are higher fuel prices this winter, but the trend is in that direction. As long as the forecast calls for colder than normal temperatures, that could be a reality.
Currently, the average cost of a gallon of gasoline in the United States is $ 3.18, $ 1 more than a year ago. The price of diesel is up almost the same amount with a current price of $ 3.38.
According to a MarketWatch report, “Crude oil futures have stalled since June, but could recover and even hit $ 100.” Bank of America analysts say OPEC + has helped stabilize oil prices in recent times. In June, oil was at $ 75 a barrel, then fell in the 1960s with the help of OPEC +. Now oil prices are going up and hovering around $ 70 a barrel.
Here’s the trick, a lot of people have seen a Farmer’s Almanac forecast and it points to a cold winter ahead. NOAA’s Climate Prediction Center takes a different view with warmer-than-normal temperatures for the south.
It seems increasingly likely that the United States will see La Niña conditions this winter, which could be bad news for an already parched southern California as it will be dry and hot.
In August, the NOAA Climate Prediction Center said there was a 70% chance that La Niña would return for a second consecutive winter, this time between November 2021 and January 2022. As such, a La Niña watch was issued by the agency.
So what does this mean for winter?
“It really depends on where you are in the United States. It will vary depending on the location, ”explained NOAA climatologist Michelle L’Heureux. “The southern level during a La Niña is often drier than average during the winter, and this often extends into spring.”
Hurricane Ida’s effects on US production are also creating a further rise in oil prices, and Goldman Sachs analysts said they expected a price target of $ 80 for the fourth quarter. They also say there are upside risks in the first half of 2022.
Overall, don’t expect your gas prices to drop too much. And you better hope for a milder winter… your bank account would appreciate it.