Power Secretary Jennifer Granholm on Sunday projected an ongoing decline in fuel costs to proceed however expressed uncertainty given potential modifications in world occasions that will 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 Power Info Administration (EIA) predicting the typical worth for a gallon of gasoline to dip to $3.78 within the fourth quarter.
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“We hope that that’s true,” stated Granholm.
“However, once more, it may be impacted by what’s occurring globally,” she added. “The president has finished greater than any president in historical past to make it possible for the worth, insofar as he’s acquired management, continues to say no, and has included asking for elevated manufacturing each domestically and abroad.”
After a number of months of fuel worth will increase, partially exacerbated of Russia’s invasion of Ukraine, fuel costs surpassed a median of $5 per gallon for the primary time. However costs have steadily declined since mid-June, falling under $4 final week and standing at $3.96 as of Sunday, in response to AAA.
However for ever and ever to the struggle in Ukraine and the European Union (EU) set to dial again crude oil imports from Russia over the approaching months, Granholm on CNN and the outlook she cited each cautioned their forecasted decline may change based mostly on world occasions.
“Fuel comes from oil, and oil is traded on a world market,” stated Granholm. “And world occasions have an effect on the worth of oil. However the president has taken unprecedented steps to attempt to reasonable provide and demand by releasing one 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 vitality consumption.
“The August Quick-Time period Power Outlook (STEO) is topic to heightened uncertainty ensuing from Russia’s full-scale invasion of Ukraine, how sanctions have an effect on Russia’s oil manufacturing, the manufacturing selections of OPEC+, the speed at which U.S. oil and pure fuel manufacturing rises, and different contributing elements,” EIA’s forecast reads.