US Energy Secretary Predicts Lower Gas Prices as Summer Demand Eases
The US energy secretary, Chris Wright, predicts lower gas prices as summer demand eases. The disruption of oil flows and subsequent price hike after the February conflict with Iran have kept prices elevated. However, Wright believes that declining gasoline demand after Labor Day, combined with relaxed refining rules and new Venezuelan reserves, will help lower prices.
Brent crude closed at $95.52 per barrel on Friday, up from $72.48 pre-war, due to the Iran conflict and Strait of Hormuz disruptions. The national average for regular gas hit a record Labor Day high of $4.14 on Sunday, a 38% increase since before the war.
The Trump administration's deal to secure 65 billion barrels of oil reserves from Venezuela is expected to contribute to lower prices. Wright said on ABC's 'This Week' that gasoline demand should decline after Labor Day as the US moves out of the summer driving season, allowing for increased fuel supply and further price drops.