/You Can Expect Oil Prices to Keep Climbing

You Can Expect Oil Prices to Keep Climbing

Former Shell Oil President John Hofmeister warned that Americans can expect to see oil prices continue to climb. The energy expert cited the Coronavirus pandemic as well as the new Biden administration as two major factors behind the uptick in oil prices.

Gas prices have been steadily rising across the country, reaching a national average of $2.75 a gallon as of Thursday, which is 33 cents higher than the same time in 2020.

AAA forecasts the national gas price average will hit at least $2.80 this month, according to a news release, which explained that that means drivers can expect continued increases of at least 5 to 10 cents in local markets until refinery operations are stable.

He warned that “the prohibition on new leases from the Biden administration” will “create a psychology in the industry of there’s going to be less available and the psychology drives the pricing as well.”

“As long as we see this hostile administration, we’re going to have a problem with prices,” Hofmeister continued.

In January, President Biden signed an executive order that put drilling and fracking on federal lands and waters on hold for 60 days in an attempt to combat climate change. Biden on the campaign trail called for the U.S. to phase out its dependence on fossil fuels.

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