National gasoline prices will rise to $4/gallon due to increased winter demand and heavy production cuts by the Organization of Petroleum Exporting Countries (OPEC), experts told Daily Caller News Foundation. This could threaten Democrats’ midterm prospects.
The country’s gas prices have been increasing for almost three weeks. They may rise further after OPEC+ and Russia-led allies cut daily crude oil production by more than two million barrels. Experts told the DCNF that this caused crude oil prices to rise. According to AAA data, the national average gas price is $3.92. This is 14 cents more than the Sept. 29 gas price.
Politico reported that the price rises have thrown a wrench into Democrats’ midterm plans. The White House wants to keep gas prices low because it believes that the perception of the economy is heavily influenced by pump prices. The Biden administration also tried to blame oil companies “price gouging”, as rising prices at the pump could hurt Democrats’ chances in November midterm elections.
According to the Department of Energy, the Biden administration released 155 million barrels of oil since April from its emergency stockpile to lower high gas prices. This was in response to supply constraints that were exacerbated by Russia’s invasion of Ukraine. After peaking in June, gas prices dropped for almost 100 days. However, they started rising on Sept. 22.
According to Flynn, President Joe Biden brought a lot of oil to the market, draining the U.S. Strategic Petroleum Reserves. This increased supply and lowered prices. However, OPEC+ reduced production so that the negative effects of Biden’s emergency stockpiles being drained will quickly be negated. According to Energy Information Administration data, the SPR still has 408.7 millions barrels of oil in its stockpile. This is its lowest level for nearly 40 years.
In an Oct. 7 speech, President Joe Biden stated that he had brought down gas prices by more than $1.60 per gallon. He also said that he would continue to bring down prices. The DOE intends to release 10,000,000 more barrels in November, and the White House announced on Oct. 5, that it was looking into new SPR releases because of OPEC’s decision not to reduce production.
Karine Jean-Pierre, White House Press Secretary, stated that the administration had not planned to do so less then a day before.
Reuters was informed by top oil traders on Oct. 4, that oil demand has remained steady despite growing concerns that the global economy is in recession. According to S&P Global, high natural gas prices could be a reason for countries to switch to oil. This could help keep oil demand ahead of winter due to Russia’s invasion.
Flynn stated to the DCNF that it was “one of the most serious mistakes made by the Biden administration.” “They have chosen to pursue the oil industry for war profiteering, price gouging, and war profiteering while they cancel pipelines and impose drilling moratoriums.”
Biden cancelled the permit for the KeystoneXL pipeline in his first day of office. This large pipeline could have carried 830,000 barrels of Canadian crude oil per day into the United States, according to the government. According to The Wall Street Journal, Biden also granted the fewest acres of federal oil and gas leases in his first 19 months as president.
The Daily Caller News Foundation reached out to the White House for comment but they did not respond immediately.