CNN —President Joe Biden on Wednesday formally announced the sale of an additional 15 million barrels from the Strategic Petroleum Reserve in December as he looks to lower gas prices ahead of the crucial midterm elections.
“With my announcement today, we’re going to continue to stabilize markets and decrease the prices at a time when the actions of other countries have caused such volatility,” Biden said in a speech from the White House. “And I’ve told my team to be prepared to look further – look for further releases in the months ahead if needed.”
The President also revealed the administration’s plan to purchase oil to refill the emergency reserve, which is now at its lowest level in nearly 40 years, when prices fall to $70 a barrel. READ MORE...
A man walks past OPEC headquarters in Vienna on Tuesday on the eve of the 45th meeting of the Joint Ministerial Monitoring Committee and the 33rd OPEC and non-OPEC Ministerial Meeting. The in-person meeting of OPEC members led by Saudi Arabia and allied members headed by Russia will be the first in the Austrian capital since the spring of 2020. Joe Klamar/AFP via Getty Images
A supply cut could also exacerbate tensions between Saudi Arabia and the U.S., where President Biden has been trying to rein in prices at the gas pump ahead of the midterm elections.OPEC+, formed in 2016, includes the 13 Organization of Petroleum Exporting Countries members and 11 other non-OPEC members. READ MORE...
Pain at the pump has gotten so bad that demand for gasoline is dropping just as the summer driving season is about to begin.
Demand on a four-week rolling basis has hit its lowest level during this time of year since 2013, excluding the pandemic-outbreak period in 2020, according to data from the Energy Information Administration compiled by Bloomberg. Compared with year-ago levels, demand is down roughly 5%.
Prices at gas stations across the US have hit record after record over the past two weeks, dashing some hopes for a driving season that approaches pre-COVID-19 levels, AAA previously predicted.
The average gallon of gas in the US hit $4.59 on Tuesday, about 51% higher than a year ago, according to AAA data. Regular gas prices have never hit this level. And in California, AAA data showed, prices can be over $6. READ MORE...
The share of Americans who rate inflation as the top issue facing the country is at the highest in nearly 40 years, according to a Gallup poll released Tuesday.
About one in five Americans, or 17%, surveyed March 1-18 cited inflation as the nation’s most important problem. That’s up from 10% in February, and compares with 4% who pointed to fuel prices in particular.
U.S. consumer prices are rising at the fastest pace in four decades, outpacing wage gains and fanned further by Russia’s war in Ukraine. Gas prices are near record highs -- well over $4 a gallon nationwide -- especially straining lower-income families.
Among those polled -- a little over 1,000 U.S. adults -- 22% say the government is the top problem outside of the economy, while 9% cited the war in Ukraine. The share citing the coronavirus fell to the lowest level since the pandemic began.
Similar to a University of Michigan survey -- which showed U.S. consumer sentiment remained at a decade low in March -- inflation concerns diverge sharply from a political perspective. Nearly 80% of Republicans are worried about inflation, more than double the proportion of Democrats, according to Gallup. SOURCE: Bloomberg READ MORE...
Crude oil prices are on a path to highs not seen since 2014, according to one chart analyst.
As the energy sector tracks for its best quarter on record with a year-to-date gain of nearly 40%, there’s “clearly some upside” for oil prices as well, Piper Sandler’s Craig Johnson told CNBC’s “Trading Nation” on Friday.
U.S. West Texas Intermediate crude prices slid half of 1% to around $65.60 a barrel on Friday.
“I could actually see a number that could be north of 100 in the next, say, six to ... 12 months from here,” said Johnson, his firm’s senior technical research analyst.
The Energy Select Sector SPDR Fund (XLE) is also showing signs of life after a difficult 2020, he said.
“There is clearly a double bottom that has been made and even a higher low that has been made,” he said, citing a chart of the 23-stock exchange-traded fund.
“We’re getting a multi-year reversal in terms of the performance of the XLE compared to the S&P 500. Clearly, there are some very positive trends happening here,” he said. “These are longer-term themes and trends that are starting to unfold.”
One smaller name could see outsized benefits from those trends, Johnson said.
“Don’t forget about the mid- and small-cap stocks, too, because they’re also participating in the action,” he said, pointing to a chart of exploration and production company Cimarex Energy. READ MORE
