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US Energy Secretary Says Gas Prices Will Dip When Americans Drive Less
Business Insider • • nation
Key Points:
- Gas prices in the US have surged to some of the highest levels in years following the US attack on Iran in February, with ongoing conflict causing further instability in oil markets.
- Despite the tension, US Department of Energy Secretary Chris Wright expects gas prices to decline after Labor Day as summer driving demand decreases.
- The Trump administration's deal to secure 65 billion barrels of Venezuelan oil reserves and relaxed refinery regulations are also expected to help lower gas prices, though infrastructure challenges in Venezuela may delay impact.
- The near-closure of the Strait of Hormuz by Iran, a critical passage for global oil and LNG, has driven Brent crude prices from $72.48 pre-conflict to $95.52 per barrel recently, contributing to higher fuel costs including jet fuel.
- The American Automobile Association reported record-high Labor Day gas prices at an average of $4.14 per gallon, marking a 38% increase since before the conflict began and surpassing previous Labor Day records.
