Rising crude costs threaten to reverse June’s CPI decline, with natural gas shortages looming by 2030 amid AI and LNG demand.
Oil prices surged 17% in a month, pushing the national average gas price to $4.08 per gallon and eroding the sole positive CPI reading of the year. West Texas Intermediate crude rose to $82.47 a barrel today, up 5.5% from a month earlier, while Brent settled near $88.44.
June’s CPI dip to 333.952, driven by lower commodity prices, faces reversal as July data looms. Gas prices climbed $1.29 in four weeks to $4.01 per gallon, pressuring consumer sentiment, which remains 10.5% below last year’s levels despite a July rebound.
Analysts warn natural gas storage could deplete by 2030 due to AI data center demand and LNG exports, forcing a trade-off between exports, compute needs, and household energy costs. Electricity prices are forecast to rise 5% by 2026.