The White House on Friday moved to quell concerns over Memorial Day weekend gasoline prices soared above $3 a gallon for the first time in seven years.
Regular gasoline averaged $3.04 a gallon nationwide on Friday, according to AAA. The price, the highest for Memorial Day weekend since 2014, was $1.08 more expensive than last year when demand fell due to coronavirus. -19
“While prices have risen from last year’s lows, Due to a sharp drop in demand, the price of just $3 per gallon is still in line with what they have received over the past several decades,” spokesman Jen Psaki said in a statement.
Gasoline demand has risen sharply this year due to pent-up demand. As Americans quit traveling unnecessarily while at home to help slow the spread of COVID-19.
The destruction of demand and the price war between Russia and Saudi Arabia in April 2020 sent crude oil prices to a temporary drop below zero. As a result, the price of gasoline fell.
However, demand recently hit a 16-month high, according to Stephen Schork, editor of The Schork Report, as more Americans get vaccinated and states begin to reopen their economies. meanwhile Supply futures fell to a 19-month low at 23 days.
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Schork, meanwhile, said Biden’s management was correct in claiming that prices were in line with what they had been in the past several decades. He cautioned that the foundation for keeping prices high for a long time had been laid.
“There are legitimate concerns for going down the road,” Schork said. “What will come back to bite the administration about making the pipeline more difficult for building infrastructure.”