Oil and gasoline prices are rising now, just in time to become an issue in the 2024 presidential campaign.
The U.S. price of West Texas Intermediate topped $86 a barrel in Friday trading, while the international Brent index briefly touched $91 before falling just below that level.
This is the highest oil price recorded since October of last year, and is also impacting gas prices at the pump in the United States, AAA reports. average price The price of a gallon of regular gasoline is at its highest level in 2024, at $3.58. oil price.com reported on Friday Wholesale gas prices are $2.79, up 78 cents since the beginning of the year and 35% in the first 95 days of 2024.
Gas prices at the pump always increase to some extent during this time because refiners must switch production from winter blends of fuel to summer blends to comply with EPA haze reduction regulations. March and April are also a time when many refineries are temporarily shut down for routine maintenance and repairs, and the combination of these two activities increases refining and distribution costs, leading to a drop in retail gasoline prices. It will be reflected.
Rising gas prices are always a thorny issue for political parties in power to deal with in election years. For the Biden administration, this will be an even bigger problem than usual in 2024. In its efforts to rein in gas prices ahead of the 2022 midterm elections, the White House has already largely exhausted its primary means of providing at least the illusion of: When it chose to drain some 250 million barrels of oil from the country’s Strategic Petroleum Reserve, it decided to “do something” to address the problem. This completely inappropriate abuse of the SPR, a national security instrument, reduced its volume to about 340 million barrels. This is equivalent to just 17 days of US needs and the lowest level in more than 40 years.
The White House and Energy Secretary Jennifer Granholm have since delayed sporadic efforts to replenish the SPR, replenishing just over 20 million barrels in the past 18 months. Just this week, Granholm announced it was canceling plans to solicit bids for an additional 3 million barrels due to soaring oil prices.
Now, with the US already embroiled in two separate wars in Europe and the Middle East, and China intensifying its saber rattling towards Taiwan, the US is pushing the SPR even further for a new crude political exercise. We cannot afford to abuse it. The existence of these wars, their potential escalation, and rumors of more wars on the horizon have dramatically increased geopolitical risks, another factor contributing to the rise in oil prices. .
This reality leaves the White House with few other tools at its disposal. Also, the OPEC+ cartel this week reaffirmed its commitment to oil export limits it has been adhering to since last fall, so U.S. drivers won’t expect any supply relief there. In addition to it, Energy Information Management Bureau It recently announced that it believes U.S. domestic oil production is now leveling off after a very healthy increase in 2023. However, the world’s demand for crude oil continues to increase at an accelerating rate, despite the best efforts of the climate change movement to eliminate demand for crude oil.
Unless a demand-destroying global recession suddenly materializes, there is little reason to believe oil prices will stop rising anytime soon. This means that with the summer driving season just around the corner, U.S. consumers can expect gas prices to continue to rise rapidly.
Throughout 2022, I and many others have repeatedly warned that Biden’s political assault on the SPR will reduce U.S. energy security and leave U.S. motorists vulnerable in the face of future oil supply shortages. did. Now, just two years later, the chickens are coming home to roost.
David Blackmon is an energy writer and consultant based in Texas. He spent his 40 years in the oil and gas business, specializing in public policy and communications.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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