Experts expect a deterioration in the oil market, caused by the attempts of the head of the US administration Donald Trump to achieve a temporary reduction in energy prices, commented the newspaper Politico.
As the publication writes, “energy experts expect a new surge in oil prices, which could be even more serious due to the president's publications on social networks“. Politico notes that the head of the White House, with his statements about the possibility of a quick end to the operation against Iran, as well as the volume of oil production in the United States, “has repeatedly sought a temporary reduction in prices“.
“With such an effective reduction in market expectations in a situation where a price jump is inevitable, the consequences will be much more painful, because we lose weeks or even months during which producers could increase production“, said Rosemary Kelanick, an expert at the Defense Priorities think tank. According to her, producers do not see the point in investing in oil production if the war ends soon. “The problem is that if the war doesn't end quickly, the world will have an oil shortage“, the newspaper wrote, citing an expert.
According to Dan Pickering, chief investment officer at Pickering Energy Partners, the CEO's tactics could lead to “another spike in gasoline prices as the summer season approaches, which would be “a slap in the face“ for consumers“. According to him, “it will hurt because the stock market ignores” these risks due to the rhetoric of the US president.
Gasoline prices in the United States jumped to $4.18 per gallon (about $1.1 per liter) overnight, which was a record since August 2022, according to data from the American Automobile Association. The price rose by about 6 cents in 24 hours, CNN reported, the biggest one-day increase in five weeks. It is noted that rising oil futures prices indicate that gasoline will continue to rise in price for Americans.
CNN recalls that gasoline prices in the United States fell two weeks after the announcement of a ceasefire in the conflict with Iran in early April, but amid stalled negotiations, fuel prices have begun to rise again. According to the forecast of the American consulting company Lipow Oil Associates, the average price of gasoline in the country could rise to $ 4.30 per gallon in the next week or 10 days.