Despite the fall season, gasoline prices are not dropping due to supply cuts in Saudi Arabia and Russia, as well as flooding in Libya, causing crude oil prices to rise 

Oil prices recently hit a 10-month high and are set for their largest quarterly increase since early 2022 

Rising oil prices are concerning for Wall Street as they can lead to higher inflation and potential interest rate hikes by the Federal Reserve, which could negatively impact the economy 

Rising gas prices can also reduce consumer spending in other areas and increase the risk of a recession 

Factors contributing to the current oil price situation include ongoing auto worker strikes, potential government shutdowns, a subdued Chinese economy, and geopolitical tensions 

David Kelly, Chief Global Strategist at JPMorgan Asset Management, believes that oil prices are unlikely to trend significantly higher in the next year or two 

Kelly mentions that adjusted for inflation, current oil prices are not exceptionally high when compared to past levels 

He points out that the U.S. is rapidly increasing its oil production and expects record liquid fuel production in the coming year 

Slow global economic growth and the transition to green energy are expected to limit the growth in demand for fossil fuels 

Kelly advises investors to consider opportunities in the energy transition and suggests a defensive position due to the potential risk of recession if the Federal Reserve raises interest rates further