Total US gasoline inventories could fall below 160 million barrels by the end of August the lowest level since the 1950’s

Very late on Tuesday, analysts at JP Morgan warned and predicted $6 gasoline prices by this summer. The average price of gasoline in California hit $6 a gallon on Tuesday, the first time ever reaching that milestone. Now, JP Morgan is warning that $6 per gallon could be the national average before the end of the summer. The warnings were reported by CNN, which you may read by clicking here.

JP Morgan analysts warned, "If exports persist at this elevated pace and refinery runs -- already near the top range for reasonable utilization rates -- fall within our expectations, gasoline inventories could continue to draw to levels below 2008 lows and retail gasoline prices could climb to $6/gallon or even higher," the JPMorgan analysts wrote. Based on those assumptions, total US gasoline inventories could fall below 160 million barrels by the end of August, the lowest level since the 1950s… JPMorgan said that unless refineries "immediately" cut exports and shift production towards gasoline, "US consumers should not expect much in the way of relief in prices at the pump until the end of the year."

“As Massachusetts motorists are on the verge of paying six dollars a gallon for gasoline, Speaker Ron Mariano and Senate President Karen Spilka should reconsider their thoughts that suspending the state gas tax is a gimmick. Instead, they should address suspending the gas tax and cutting other taxes to help middle class Massachusetts taxpayers keep more of their hard-earned money. What taxpayers need right now is to be able to keep more of their money to help their households keep pace with the high rate of inflation. With continued over-projected tax collections coming in, our State House leaders could and should help, but they choose to ignore the problem all together,” stated Paul Diego Craney, spokesman for the Massachusetts Fiscal Alliance.

“Massachusetts taxpayers could be in for a big surprise if the legislature’s graduated income tax surtax ballot question passes this November. Many employers will want to look elsewhere instead of paying Speaker Mariano and President Spilka’s 80% income tax surcharge. When these small businesses leave, they take with them their workforce and it will have an indirect impact on ordinary middle-class taxpayers,” concluded Craney.