Gas prices will probably reach $100 a barrel this month for the first time in 2023.
Rising demand for flights in the US, Europe and, more recently, China, has fueled even more growth in jet fuel prices, tracked by the Energy Information Administration (EIA). Prices averaged $3.07 a gallon in late August, up 50% from a recent low of $2.05 in early May.
The International Energy Agency (IEA) warned last week that continued supply cuts by the two OPEC+ leaders would create “significant supply shortages”, posing a significant threat to continued price volatility.
The report came just a day after OPEC said the market faces a shortfall of more than 3 million barrels per day in the coming quarter, which could result in the biggest supply shortage in more than a decade.
Betting on gas is becoming a favorite trade on Wall Street. No one doubts that the decision of OPEC + (gas production) at the end of last month will keep the gas market very firm in the fourth quarter – said Edward Moya, analyst at OANDA.