Business News: Former Shell Oil Chairman says, “Gas prices will be adversely affected by the ‘hostile’ Biden administration”.
President Biden’s “hostile administration” will create problems in relation to gas prices, John Hofmeister, former president of Shell Oil, warned Thursday in “Mornings with Mary”.
West Texas Intermediate crude oil rose from $ 1.06 to $ 62.34 a barrel on Thursday as OPEC leaders and their allies re-examined share cuts.
The latest rally in oil markets has pushed crude oil prices to their highest levels since the start of the coronavirus pandemic, fueled by recovery in demand and production cuts.
“The main reason gasoline prices are rising again is that many refineries have closed, which means there is less final product available,” Hofmeister told presenter Maria Bartiromo.
Gas prices have increased at the pump in recent weeks, reaching a national average of $ 2.75 per gallon as of Thursday, which is 33 cents higher than the same period in 2020, according to AAA.
AAA expects average national gas prices to reach at least $ 2.80 this month, according to a press release, which explained that this means that drivers can expect continued increases of at least 5-10 cents in local markets until refinery operations will not be stable.
The latest price increases are “a direct result of the February winter storm that took 26 US refineries out of service and prompted their use. from an average of about 83 percent down to an atypical low of 68 percent, ”AAA noted, citing the Energy Information Administration (EIA).
Freezing temperatures knocked out electricity across Texas last month and resulted in one of the largest oil production outages in the United States.
Closures related to the winter storm removed about 3 million barrels of daily oil production, or 27% of U.S. production, much of which comes from the oil-rich Permian Basin located in west Texas and eastern New Mexico. Refining capacities in Houston have also been shut down.
“Excluding hurricane season, March could bring the most expensive pump prices of 2021,” said AAA spokesperson Jeanette Casselano McGee. “While the month is roaring like a lion, we may eventually see some relief at the pump as refineries resume normal operations, especially if crude oil prices show signs of stability.”
“As far as we see this hostile government, we will have difficulties with prices,” continued Hofmeister.
In January, President Biden signed an executive order that halts drilling and fracking on federal land and waters for 60 days in an effort to curb climate change. During his campaign, Biden called on the United States to become progressively less dependent on fossil fuels.