Gas Prices Expected to Spike This Winter

Even though gas prices have fallen since the baffling peak in June, don’t get used to it.

Although the rise is not predicted to be of the same magnitude seen in Europe, CEO of Chevron Mike Wirth told CNN’s Poppy Harlow that “there’s certainly a risk that costs will go up” for American consumers.

Mike Wirth also told CNN natural gas prices could be “significantly higher” this winter in the United States.

Oil stocks have been rising in 2022 with the United States Oil Fund increasing by more than 15%. “That has helped boost sales, earnings and the stock prices of companies like Chevron. Shares of Chevron (CVX) are up nearly 40% in 2022, making them the best performer in the Dow. Rival Exxon Mobil (XOM) has soared almost 60%” (CNN).

Wirth argued that gas prices will go down if there is more supply in America as well as if companies have the financial motivation to produce more oil.

“If you increase taxes on the industry, that does not incentivize investment, it discourages investment. And that’s a simple economic truth,” Wirth said. “We work around the world and our capital is mobile. And so a windfall profits tax in one country is likely to move that investment somewhere else” (CNN).

Winter is coming and it might bring high gas prices with it.