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Veteran commodities strategist Jeff Currie said the average U.S. gasoline price will almost certainly hit $5 a gallon before the midterm elections, citing a deadly combination of scarcity and currency debasement. What began as a shortage of refined fuels is now spreading upstream to crude oil, and the energy shock has entered a dangerous new phase. Gasoline reaching $5 a gallon is a key psychological threshold, especially with the Nov. 3 midterm elections looming and control of Congress hanging in the balance. The probability of gasoline hitting $5 before Election Day is "extremely high." Currie warned that refineries switching back and forth between diesel and gasoline output will eventually exhaust their operational flexibility. In addition, there is no sign of any renewal of the Strategic Petroleum Reserve releases that have been helping to fill the supply gap. U.S. diesel prices could reach $7 to $9 a gallon in the future. The market is entering a very dangerous phase of this commodity rally, because shortages on both sides are so extreme that the entire complex is moving together. This synchronized surge suggests the problem is more structural than a typical supply squeeze.