Gas prices will probably go up this summer
6/11/202626 min
Hate to be the bearer of bad news, but all three economists we asked say gas prices are due for another hike this summer. The war in Iran continues to drain oil reserves in the U.S. and abroad, and eventually prices will have to match growing supply-demand tension. (Yes, that’s even if the war ends today.) Also in this episode: Bond investors expect inflation to stick around for a while, a trio of upcoming IPOs will barely put a dent in total market cap, and Kansas City short-term rental demand disappoints as World Cup kicks off.
Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.
Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.
Clips
Transcript preview
First 90 secondsKai Ryssdal· Host0:00
[upbeat music] I don't want to alarm anybody, but have you seen prices lately? From American Public Media, this is Marketplace. [upbeat music] In Los Angeles, I'm Kai Ryssdal. It is Thursday today. This one is the 11th of June. Good as it always is to have you along, everybody. So here's what's happened in the oil markets the past couple of days. There was talk of a peace agreement in the war, and oil prices went down. Then there was shooting, and oil prices went down. Then there was the president saying he was gonna bomb Iran hard, and oil prices went down. And then the president said the bombing is off, and here we are. Oil prices are down. Part of why is that the United States has been drawing down its commercial and strategic oil reserves. Crude inventories fell another 7.2 million barrels this week. That brings the drawdown, Reuters says, to almost 80 million barrels since the war started. There are, yes, still hundreds of millions of barrels left, but inventories can only get so low before the supply chain starts to break down. Traders might not care about the geopolitics, but they are sure gonna care about the logistics. Marketplace's Kaely Wells gets us going.
Kaylee Wells1:19
Out of all those barrels in our oil inventories, a lot of them just aren't accessible.
Aaron Brady· Soundbite1:24
You think about a, a large storage tank, there's always gonna be some oil, uh, at the bottom that can't be