Energy secretary expects gas prices to fall further

(The Hill) – Energy Secretary Jennifer Granholm on Sunday projected an ongoing decline in gas prices to proceed however expressed uncertainty given potential adjustments in international occasions that might impression provide ranges.

In an look on CNN’s “State of the Union” with visitor anchor Brianna Keilar, Granholm cited a latest short-term outlook from the Energy Information Administration (EIA) predicting the common value for a gallon of gasoline to dip to $3.78 within the fourth quarter. 

“We hope that that’s true,” mentioned Granholm. 

“But, again, it can be impacted by what’s happening globally,” she added. “The president has done more than any president in history to make sure that the price, insofar as he’s got control, continues to decline, and has included asking for increased production both domestically and overseas.”

After a number of months of gas value will increase, partially exacerbated of Russia’s invasion of Ukraine, gas prices surpassed a median of $5 per gallon for the primary time. But prices have steadily declined since mid-June, falling beneath $4 final week and standing at $3.96 as of Sunday, according to AAA.

But with no sign of ending to the battle in Ukraine and the European Union (EU) set to dial back crude oil imports from Russia over the approaching months, Granholm on CNN and the outlook she cited each cautioned their forecasted decline may change primarily based on international occasions.

“Gas comes from oil, and oil is traded on a global market,” mentioned Granholm. “And global events affect the price of oil. But the president has taken unprecedented steps to try to moderate supply and demand by releasing a million barrels per day from the Strategic Petroleum Reserve.”

The EIA’s newest outlook included related sentiments whereas additionally acknowledging an financial downturn may end in lowered demand from decrease power consumption.

“The August Short-Term Energy Outlook (STEO) is subject to heightened uncertainty resulting from Russia’s full-scale invasion of Ukraine, how sanctions affect Russia’s oil production, the production decisions of OPEC+, the rate at which U.S. oil and natural gas production rises, and other contributing factors,” EIA’s forecast reads.