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Tom Kloza, global head of energy analysis at OPIS, warns that the prices of heating oil and diesel could increase “incredibly” with current demand.
The Biden administration is considering a release of emergency oil reserves as one of many options to alleviate a global energy crisis that has spiked prices for consumers, US Secretary of Energy Jennifer said on Wednesday. Granholm.
“It’s a tool that is being explored,” Granholm said in an appearance at the Financial Times energy transition strategies summit on Wednesday.
Gas prices in the United States jumped to $ 3.21 per gallon this week, marking the highest cost in seven years. Patrick De Haan, head of petroleum analysis for GasBuddy, said prices could reach $ 3.30 per gallon by the end of the month.
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Dan Eberhart, CEO of petroleum services provider Canary, says the supply crisis and the Biden administration’s increased regulations for the energy sector are contributing to “the perfect preparation for higher oil prices.”
The Department of Energy’s website describes the Strategic Petroleum Reserve as “the world’s largest reserve of emergency crude oil.” Stored at four sites along the Gulf of Mexico coast, the reserve was “established primarily to reduce the impact of petroleum product supply disruptions and to fulfill United States obligations under the international energy program. “.
Energy Secretary Jennifer Granholm speaks during a White House press briefing on Tuesday, May 11, 2021, in Washington. (AP Photo / Evan Vucci) (PA)
Strategic oil reserves have been released on at least three occasions. The most recent publication came in 2011, when the Obama administration sold 30 million barrels of crude oil to ease pressure on consumer prices as the unrest in Libya disrupted global supplies.
Granholm said the United States may also consider a ban on crude oil exports to address domestic supply concerns.
Tom Kloza, global head of energy analysis at OPIS, responds to record crude oil prices.
Energy producers have been slow to meet growing demand for petroleum products as economies recover from the COVID-19 pandemic. Prices have skyrocketed this week after OPEC countries declined calls to increase production faster than expected.
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