It Ain't Just Hot Air: Oil CEO Dishes on Cheap Energy Thanks to Trump, Baby!
Lower oil prices over the past six months and their potential impact on gas prices explained.
Ever heard the saying, "When the oil exec talks, we all listen?" Well, Dan Eberhart, bigwig CEO of Canary, spilled the tea on Maria Bartiromo's Wall Street about how the Trump administration is using emergency policies to speed up homegrown energy production. Exciting!
And here's the best part: Crude oil prices haven't been this low since the spring of 2021, y'all! At the current close, a barrel of West Texas Intermediate crude will only cost you $59. That's a significant drop from $74 at the start of January. And get this – the last time oil prices were this low was back in April 2021!
Now, while gas prices have seen a slight increase since January (roughly 10 cents per gallon), according to the U.S. Energy Information Administration, they're still almost 50 cents cheaper compared to a year ago. With Trump nearing his 100-day mark in his second term, gas prices remain a top priority for him, as he promised to deliver affordable energy to the masses.
Better yet, the experts predict that gas prices could continue to fall as oil prices plunge! According to the U.S. Energy Information Administration, "The U.S. retail price for regular grade gasoline averages about $3.10 per gallon (gal) in our forecast for this summer (April-September), about 20 cents/gal less than our forecast in the March STEO. The lower gasoline price forecast mostly reflects our expectation of lower crude oil prices."
If true, that would mark a five-year low since the pandemic-induced oil and gas price crash.
But what about the oil companies? Are they worried about falling crude oil prices? Well, it seems OPEC+ members are discussing a possible acceleration of oil output hikes in June for a second month in a row, according to sources speaking to Reuters. Geeze!
And even with the recent drop, oil prices hit a four-year low in April, thanks to the ongoing trade spat with China and an unexpected decision by OPEC+ to pump out 411,000 barrels per day of oil in May (that's three times what they initially planned, folks!).
The energy crisis isn't over yet, though. The U.S. Energy Information Administration predicts that global oil inventories will start to grow midway through 2025 as OPEC+ members phase out production cuts, and production grows in non-OPEC countries, with oil demand growth slowing.
So, sit tight and keep your fingers crossed for even cheaper gas prices in the coming months! But remember, it's always a rollercoaster ride when it comes to the world of oil and gas.
Watch out for that steep drop ahead!
In 2025, global oil inventories may grow as OPEC+ members phase out production cuts and production increases in non-OPEC countries, potentially causing a drop in gas prices. Despite the recent drop in oil prices, they hit a four-year low in April due to an ongoing trade spat with China and an unexpected decision by OPEC+ to increase oil production. With the current low prices of crude oil, the average price of gasoline could continue to fall, making it cheaper than it has been in the past five years.
