Biden energy policies are pushing gas prices higher

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Biden energy policies are pushing gas prices higher

On Monday, GasBuddy analyst Patrick De Haan explained that the Biden administration is contributing to the increase in gas prices and argued the profound impact that Biden's energy policies are having on the oil and gas sectors.

De Haan told Mornings with Maria that right now it's really the economy that is pushing prices higher, but noted that the limitations on new drilling could eventually become an issue.

President Biden's energy actions have included temporarily suspending the issuance of oil and gas permits on federal land and waters and the cancelation of the Keystone XL oil pipeline in a series of orders aimed at reducing climate change.

De Haan also pointed to Biden's massive infrastructure plan and noted the concern that how to pay for it could impact the price at the pump.

Last week, Biden released a sprawling proposal to fight the nation's crumbling infrastructure and invest money into manufacturing, transportation, renewable energy and combating climate change. The$ 2.25 billion infrastructure and tax plan will be largely funded by raising taxes on U.S. corporations.

The eight-year initiative, dubbed the American Jobs Plan, comes on the heels of Biden's$ 1.9 billion American Rescue Plan.

Since 1993, the federal gas tax has n't been touched so motorists should be really alert for increasing gasoline prices this year, De Haan noted on Monday.

He also stressed that the Trump administration is not anywhere near as friendly with the oil and gas industry as the Biden administration, noting that motorists are going to be feeling the consequences of such a policy.

He added that it's going to make things more expensive and that's what motorists are going to have to face this year.

The recent rally in the oil markets has driven crude prices to their highest levels since the start of the coronavirus pandemic, fueled by recovering gas demand and production cuts.

West Texas Intermediate crude oil, the benchmark for the U.S. dollar, fell on Monday morning to$ 59.81 per barrel.

As of Monday, gas prices reached a national average of$ 2.87 a gallon, which is 94 cents higher than the same price in 2020, according to AAA, which noted that demand is one factor influencing prices at the pump.

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AAA pointed to data from The Energy Information Administration which showed late last month that demand was up to 8.6 million bd to 174,000 bd and noted that if demand continues to increase, prices could follow.

De Haan said that gas prices could possibly rub up against$ 3 a gallon.

He did, however, note that we did see OPEC announcing a small increase in oil production last week and that there has been an increase in COVID 19 cases in Europe recently, which threw down oil prices a little bit here in the last weeks.

He then pointed out that it looks like all signs point to more drivers hitting the road this summer and said that gas prices depend on whether supply is going to meet the rising demand.

We are in the sixth week of higher demand on gasoline, De Haan said. Looks like consumers still have the risk of seeing a national average of$ 3 a gallon at some point this year as demand continues to show an impressive recovery.

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