(The Hill) – Energy Secretary Jennifer Granholm predicted on Sunday that a continued decline in gasoline prices would continue, but expressed uncertainty given potential changes in world events that would impact on supply levels.
During an appearance on CNN’s “State of the Union” with guest anchor Brianna Keilar, Granholm cited a recent Energy Information Administration (EIA) short-term outlook predicting that the average price of a gallon of gasoline will drop to $3.78 in the fourth quarter. .
“We hope that’s true,” Granholm said.
“But, again, that can be impacted by what’s going on in the world,” she added. “The president has done more than any president in history to ensure that the price, as far as he has control, continues to come down, and has notably called for increased production both at the country and abroad.”
After several months of gas price increases, partly exacerbated by Russia’s invasion of Ukraine, gas prices have risen above an average of $5 a gallon for the first time. But prices have been steadily falling since mid-June, falling below $4 last week and settling at $3.96 on Sunday, according to AAA.
But with no end in sight to war in Ukraine and the European Union (EU) poised to cut crude oil imports from Russia over the next few months, Granholm on CNN and the outlook she cited both warned that their projected decline could change depending on the global situation. events.
“Gas comes from oil, and oil is traded on a global market,” Granholm said. “And world events affect the price of oil. But the president has taken unprecedented steps to try to moderate supply and demand by releasing one million barrels a day from the strategic oil reserve.
The latest EIA outlook included similar sentiments while acknowledging that an economic downturn could lead to reduced demand due to lower energy consumption.
“The August Short-Term Energy Outlook (STEO) is subject to heightened uncertainty stemming from Russia’s large-scale invasion of Ukraine, how sanctions affect Russian oil production, OPEC+ production, the rate at which U.S. oil and natural gas production is growing, and other contributing factors,” reads the EIA forecast.
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