Energy Secretary Jennifer Granholm on Sunday projected an ongoing decline in gas prices to continue but expressed uncertainty given potential changes in global events that would impact supply levels.
In an appearance on CNN’s “State of the Union” with guest anchor Brianna Keilar, Granholm cited a recent short-term outlook from the Energy Information Administration (EIA) predicting the average price for a gallon of gasoline to dip to $3.78 in the fourth quarter.
“We hope that that’s true,” said Granholm.
“But, again, it can be impacted by what’s happening globally,” she added. “The president has done more than any president in history to make sure that the price, insofar as he’s got control, continues to decline, and has included asking for increased production both domestically and overseas.”
After multiple months of gas price increases, in part exacerbated of Russia’s invasion of Ukraine, gas prices surpassed an average of $5 per gallon for the first time. But prices have steadily declined since mid-June, falling below $4 last week and standing at $3.96 as of Sunday, according to AAA.
But with no end in sight to the war in Ukraine and the European Union (EU) set to dial back crude oil imports from Russia over the coming months, Granholm on CNN and the outlook she cited both cautioned their forecasted decline could change based on global events.
“Gas comes from oil, and oil is traded on a global market,” said Granholm. “And global events affect the price of oil. But the president has taken unprecedented steps to try to moderate supply and demand by releasing a million barrels per day from the Strategic Petroleum Reserve.”
The EIA’s latest outlook included similar sentiments while also acknowledging an economic downturn could result in reduced demand from lower energy consumption.
“The August Short-Term Energy Outlook (STEO) is subject to heightened uncertainty resulting from Russia’s full-scale invasion of Ukraine, how sanctions affect Russia’s oil production, the production decisions of OPEC+, the rate at which U.S. oil and natural gas production rises, and other contributing factors,” EIA’s forecast reads.