Goldman Sachs predicts that the price of US gas at the pump will rise to about $4.35 a gallon by the end of the year, and then reach an average of $4.40 next year, as supply constraints drive up prices.

Gas prices have fallen dramatically over the past month or so after topping $5 a gallon in June as oil prices fell and refineries eased bottlenecks. AAA said the average price on Monday was $4.059 a gallon.

But Goldman said in a note on Sunday that it expects oil prices to pick up from here after a sharp fall in recent weeks. This is because supply is still running low, while global demand remains relatively strong.

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Goldman Sachs Warns US Gas Prices WILL RETURN To Over $4 A Gallon By The End Of The Year

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