Gas prices have quietly been on the rise over the summer as President Joe Biden and his administration have touted the merits of his “Bidenomics” agenda.
U.S. oil prices jumped by nearly 4% last week, and the per-gallon price at the pump hit a national average of $3.75 Monday, the highest recorded average since November 2022, according to AAA and the U.S. Energy Information Administration. Continued increases may pose a new headache for Biden, who is promoting the “Bidenomics” agenda ahead of his 2024 run for reelection.
Global oil prices are up 16% since late June, and they have increased for each of the past five weeks, according to CNN. Prices may only continue to rise in August and September as Saudi Arabia, Russia and other OPEC+ members undertake production cuts equivalent to about 1.5% of global supply, announced in early July.
The OPEC+ production cuts have contributed significantly to the price increases, according to Natasha Kaneva, J.P. Morgan’s head of global commodities strategy. This summer’s heat has also reduced domestic oil refining capacity while boosting consumer demand for energy, Tom Kloza, global head of energy analysis at Oil Price Information Service, said, according to USA Today.
There is a gap of about 500,000 barrels per day between global oil supply and global demand, according to a July report by the International Energy Agency. Biden administration officials are reportedly watching the rising gas prices “very carefully,” according to CNN.
