MIAMI VALLEY — Gas prices continue to climb across the county and could be higher next year.
>>WHIO Pump Patrol: Find Cheap Gas Prices
News Center 7′s Xavier Hershovitz reports Goldman Sachs predicts oil prices will average $100 a barrel a year from now.
The investment banking giant made that forecast and blames Saudi Arabia’s aggressive supply cuts.
Hershovitz says a barrel of oil currently sells for around $94 a barrel, and Goldman thinks it does not see prices going consistently above $105 a barrel next year.
Oil prices at $100 a barrel would be bad news for drivers. They are already experiencing pain at the pump as gas prices have climbed to 2023 highs in recent days.
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The average gas price is above $3.50 per gallon, according to AAA.
This includes:
- Dayton- $3.53
- Ohio- $3.58
- U.S.A.- $3.87
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Hershovitz also says the Federal Reserve decided to pause on interest rates.
They’ve spent the last year trying to curb inflation.
One concern for the Feds is gas prices.
They are up about $0.20 a gallon in the past year.
“The risk is that if oil and gas prices stay high that can ripple out into the costs of other goods and services and undermine some of the progress that we’ve seen on inflation so far,” said Greg McBride, Chief Financial Analyst for Bankrate.com.
Hershovitz reports the Fed is not ruling out another potential rate high later this year.
Their next decision on interest rates will be in November.