In The NewsMoney & The Economy

Biden Effect: Oil Pushes Higher on Tight Supply Just in Time for Summer

As Americans begin the busy summer driving season, oil prices are moving even higher due to tight gasoline supplies.

Gasoline supplies dropped more than 4.2 million barrels and other petroleum distillates (diesel, Jet A, etc) were down 949,000 barrels, according to the American Petroleum Institute.

“The tightening in the U.S. gasoline market will raise concerns over supply as we move into driving season. Tightness in the U.S. is pulling in gasoline from elsewhere, including Europe, which is also looking increasingly tight,” said Warren Patterson, head of commodities strategy at ING, in a note.

The strain on gasoline supplies comes as the Biden administration’s failure to sell a single oil or gas lease heads into its second year. In fact, experts believe that Biden won’t make a single energy lease sale before the end of his first term.

“The practical effect of this is that it is unlikely there will be offshore lease sales before the end of 2023,” said Frank Macchiarola, API’s senior vice president of policy, economics and regulatory affairs. “This is one more example of the disconnect between the administration’s political rhetoric and policy reality.”

West Texas Intermediate (WTI) jumped $1.43 to $111.20 per barrel and July Brent crude (BRNN22) jumped $1.21 to $114.77 a barrel.

As of May 24, 2022, the U.S. average per gallon cost for regular unleaded was $4.60 while diesel rang in at an average of $5.55.

Just last week, analysts had predicted that gasoline would reach an average of $6.00 per gallon across the United States and if this is how the busy travel season is going to kick-off, they may have underestimated the Biden Effect.

Content created by Conservative Daily News and some content syndicated through CDN is available for re-publication without charge under the Creative Commons license. Visit our syndication page for details and requirements.

Support Conservative Daily News with a small donation via Paypal or credit card that will go towards supporting the news and commentary you've come to appreciate.

Rich Mitchell

Rich Mitchell is the editor-in-chief of Conservative Daily News and the president of Bald Eagle Media, LLC. His posts may contain opinions that are his own and are not necessarily shared by Bald Eagle Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and

Related Articles

One Comment

  1. I do not know why this is in the news. Biden said he wants us to use less petrolium products and he said gas should be higher. He wants us to all buy electric cars. So why is this news. You voted for him, now do not complain.

Back to top button