According to Bank of America, US gas prices are likely to go up again later this year as demand remains resilient while global supply goes down.
The same factors that led to a surge in gasoline prices in June and July will lead to a trough in the fourth quarter of 2022.
"Gasoline prices should soon find a floor," a team led by Francisco Blach wrote recently. Summer dynamics could rhyme, but they don't repeat themselves exactly into year-end.
The average price of gas in the US has fallen in recent weeks. According to data from the American Automobile Association, the pump price has fallen a nickel in the past week.
The drop in gas prices was credited for cooling inflation. Stock markets can be influenced by the Federal Reserve's approach to interest rate hikes.
According to Bank of America, demand for gas has remained inelastic, meaning that Americans will fill their cars' gas tanks regardless of price.
"Our price elasticity estimates suggest US gasoline demand could still expand by 4% into the fourth quarter of 2022," the strategists said.
If there is a shortage of gas or crude oil, prices will go up, they said.
The global gasoline supply has been down in the past three months, which could support prices in the fourth quarter.
By the start of the fourth quarter, Bank of America predicts that the price of oil will go up 4% to $95 a barrel.
Over the last few days, oil benchmarks have climbed, with the price of oil rising in the same period.
US gas prices will go back to $4.35 because supplies are low.
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