In a bid to stabilize gas prices amid the upcoming summer driving season and Presidential election, the Biden administration wants to ensure that the United States remains on a steady economic course. White House economic adviser Lael Brainard emphasized the administration's commitment to maintaining gas prices within current ranges during a statement on Thursday, according to Reuters, without elaborating on how that would be achieved.
In the past, steps to keep gasoline prices in check included attempts to strong-arm OPEC/OPEC+ to boost crude oil production and selling off hundreds of millions of barrels of crude oil from the nation's Strategic Petroleum Reserve.
With summer fast approaching, gas prices traditionally tend to rise due to increased demand for travel and transportation. However, concerns about potential spikes in prices ahead of this year's presidential election have prompted the administration to address the issue preemptively. Brainard's remarks underscore the administration's recognition of the importance of affordable fuel for American consumers and businesses-particularly in an election year.
The administration's focus on stabilizing gas prices aligns with broader efforts to support economic recovery and mitigate inflationary pressures. Maintaining affordable gas prices is crucial for sustaining consumer purchasing power and bolstering business operations.
Brainard's statement comes amid ongoing global uncertainties surrounding energy markets, including geopolitical tensions between Russia and Ukraine, and Israel and Iran and Hamas.
However, while the administration aims to keep gas prices within current ranges, it must also cater to calls for an energy strategy that would satisfy the climate crowd and promote sustainability and resilience. The Biden Administration's vision for the energy sector includes massive Investments in renewable energy sources and infrastructure upgrades in hopes of reducing dependence on fossil fuels and fulfilling the nation's climate change pledges.
By Julianne Geiger for Oilprice.com
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More
Comments
Prices don't care about US presidential elections or the needs of the US economy But they do care a lot about factors underpinning them. So when the market fundamentals are solid, demand is robust, the market is getting tighter and China-led Asia-Pacific region is seeking oil imports anywhere in the world to quench its thirst, no one could stop prices surging.
So if the United States wants to depress oil prices or keep them within a range acceptable to the US economy, either global supplies have to rise significantly, or demand is to be depressed or the world to be made peaceful.
But nobody can depress demand when it is surging. Moreover, OPEC+ isn't going to oblige by lifting production to suit the American economy if this could imbalance the market and may tilt it towards glut and also undermine the national interests of OPEC+ members. Furthermore, US shale production isn't enough to make the US self-sufficient in oil or even to impact prices despite the hype. And when it comes to a peaceful world, no one can make the world peaceful as long as the US is hell bent on following policies aimed at hampering the rise of any challengers to its hegemony. Therein lies the problem.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert
Why doesn't the USA buy its cobalt and nickel from Cuba and help that dictatorship.
See where I'm going.
Are you sure oil and gas are really the bad...
ML