A key energy adviser to the Biden administration said Sunday he expects U.S. gas prices to continue falling toward $4 a gallon.
“It’s not $5 anymore,” Amos Hochstein, the presidential special coordinator for international energy affairs, told CBS’s “Face the Nation.” “It’s now $4.55. And I expect it to go further down towards $4. And we already have many gas stations across the country that cost less than $4.
The United States recorded inflation of 9.1% in June, a four-decade high, according to the Associated Press. Gasoline prices have, however, fallen since the record high of $5 per gallon reached in mid-June.
Hochstein said Russian President Vladimir Putin’s war in Ukraine has created “extraordinary circumstances” for the United States and other major energy-consuming countries.
“This is the fastest rate of decline we have seen in the face of a major increase in oil prices during a war in Europe where one of the parties to the war is the third largest producer in the world,” said Hochstein. “So these are extraordinary circumstances. We have taken very strict measures to remedy this immediately.
In March, more than a month after Russia invaded Ukraine, President Joe Biden ordered the release of one million barrels of oil a day from the Strategic Petroleum Reserve to offset high oil prices. gas. At the time, the White House said it would last up to 180 days – towards the end of September.
Hochstein, however, said releases would continue through the end of the year. By then, the White House hopes the oil industry will increase production by a million barrels a day.
“I expect the private sector in the United States to benefit from these increases, so we don’t need the urgency of the United States government,” Hochstein told CBS’s Margaret Brennan. “In the meantime, we’ve seen prices – both the price of oil, but also the price at the pump, come down at the fastest rate we’ve seen in over a decade.”
Hochstein’s interview follows Biden’s trip to the Middle East, including a stopover in Saudi Arabia which has been heavily criticized for the kingdom’s appalling human rights record, including the murder of the Washington Post Jamal Khashoggi.
The president said oil prices could fall “in a matter of weeks” following his meeting with Saudi leader Mohammed bin Salman.
The Saudis, however, have not committed to increasing oil supplies.
The Huffington Gt