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This post from CNN business reporter Matt Egan didn’t age well, and it’s barely six-months old:
Sub-$3 gas is coming soon? @EIAgov projects prices at the pump will average $2.88 in 2022.
Sub-$3 gas is coming soon? @EIAgov projects prices at the pump will average $2.88 in 2022.https://t.co/czqXms3SyR
— Matt Egan (@MattEganCNN) December 8, 2021
From the article:
Prices at the pump have finally started to creep lower, and that trend should significantly accelerate in the coming months, according to new government forecasts.
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The US Energy Information Administration said Tuesday the national average for regular gasoline will probably drop to $3.01 a gallon in January. For 2022, gas prices are expected to average $2.88.
That call is based on projections by the EIA for global oil production to increase more quickly than demand next year — especially given the emergence of the Omicron variant. This would be a reversal of the past 18 months, when output has been slow to meet surging demand as the world reopens from Covid-19.
The EIA, which is an arm of the Energy Department, cited risks that the new variant dents global consumption of energy and expectations for stronger supply from OPEC+, US shale oil companies and other major producers.
The agency also pointed to the impact from the US-led intervention in energy markets, highlighted by the biggest-ever release of barrels from America’s Strategic Petroleum Reserve.
Brent oil, the main driver of prices at the pump, is expected to average $70 a barrel in 2022. That’s down from the average of $84 in October and $81 in November.
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Many economic factors are influenced by public perception. This is why leftist corporate news outlets like CNN used to try to paint peachy pictures. Today, even they can’t make lemonade out of Biden’s fiscal lemons.
Hat Tip: Jack Posobiec
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