A note issued by the White House expected that fuel prices will continue to decline in the “near term”, which highlights Biden’s decisions such as the historic release of oil from the Strategic Petroleum Reserve, which analysts believe had the primary impact once it was announced in late March.
The memo also noted that the drop in fuel prices received a small part of the media coverage that the price hike got earlier in the spring, saying: “Without the data, you wouldn’t know that gas prices are dropping by watching the evening news or reading the newspaper.” .
President Joe Biden, who has seen his approval rating plummet amid the worst price pressures in decades, took to Twitter, saying, “I’ve released about 1 million barrels of oil per day from the Strategic Petroleum Reserve and mobilized our global partners to release 240 million barrels of oil.” In the market. Our procedures are working, and prices are going down.”
I’ve been releasing about 1 million barrels of oil a day from the Strategic Petroleum Reserve and rallied our global partners to release a combined 240 million barrels of oil onto the market.
Our actions are working, and prices are coming down. pic.twitter.com/5zrBPGvRJv
— President Biden (@POTUS) July 19, 2022
Yesterday, he indicated that prices at gas stations have been dropping for more than a month, saving the average driver about $25 a month.
“I know those extra dollars and cents mean something,” Biden said. It’s breathing space,” he said, adding, “We haven’t finished working on lowering prices yet.”
Gas prices have been dropping for 34 days straight, about 50 cents a gallon. That saves the average driver about $25 a month.
I know those extra dollars and cents mean something. It’s breathing room. And we’re not done working to get prices even lower.
— President Biden (@POTUS) July 18, 2022
After hitting an all-time high of $5,016 a gallon on June 14, prices have fallen in the last 35 days amid growing concerns about economic growth and declining physical crude market production.
Currently, fuel prices are a national average of $4,495 a gallon, down 10 percent from last month but up 42 percent from last year, according to the American Automobile Association.
The biggest factor in the decline in fuel prices was the decline in crude oil prices due to fears that an economic slowdown or recession would weaken energy demand.
Crude oil prices soared to around $130 a barrel shortly after the start of Russia’s military operation in Ukraine, raising fears of losing a major source of supply at a time of rising demand. Analysts say these fears have generally not materialized, and that most Russian crude oil has continued to flow to buyers such as India and China.
And compared to March, US crude oil production also increased by about 400,000 barrels per day, according to US data.