With refineries closing and OPEC+ announcing it is cutting oil production by 2 million barrels a day, Americans need to prepare for higher gas at the pump, the American Automobile Association warns.
On top of this, the Biden administration continues to set forth policies, including EV tax credits, disincentivizing the production of fossil fuel.
Over the past 14 consecutive days, the nationwide average price of gasoline has increased, reaching $3.83 on Wednesday, according to AAA. Since hitting a nationwide high of $5.02 in mid June, U.S. gas prices had declined for 99 days straight.
The 2 million barrel/day cut OPEC+ announced Wednesday “just threw a buck of cold water on at least a good potential that the national average could fall under $3 a gallon, by signaling its intentions well ahead of any economic slowdown,” Patrick De Haan, head of petroleum analysis at GasBuddy, told Fox Business.
“Global inventories for oil remain extremely tight, and it’s very clear that OPEC is growing addicted to triple-digit oil,” De Haan continued.
Saudi Arabia said a cutback in oil production is necessary due to higher interest rates in the West and a weaker global economy.
De Haan also slammed President Biden’s green energy policies: “The White House is basically picking a winner. It’s picking EVs, and it’s picking a loser: fossil fuels. What oil company is going to invest billions of dollars in building a new refinery? In this climate, it would be foolish.”
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