Oil Industry Warns White House Prices Could Soar This Summer
Newser • • business
Key Points:
- Oil executives warn the White House that crude oil supplies could reach "critical lows" by late summer due to declining commercial stockpiles and the Strategic Petroleum Reserve, potentially pushing gas prices above $5 a gallon.
- The Iran war is disrupting traffic through the Strait of Hormuz, a vital oil route, exacerbating supply concerns amid inflation at a three-year high, which is affecting President Trump's political standing ahead of the midterms.
- President Trump has downplayed the warnings, expressing optimism that oil prices will fall sharply once the conflict ends, while some aides credit recent reserve releases and regulatory waivers for recent price dips.
- Industry leaders, including American Petroleum Institute chief Mike Sommers, caution that the administration may be underestimating the speed of inventory depletion and the limited tanker traffic, urging urgent attention to avoid a price spike.
- Both government and industry officials are wary of being blamed if gas prices surge due to delayed action on the looming supply crunch.