Industry leaders told White House officials that shrinking fuel stockpiles and continued Iran-related disruptions could raise gasoline prices during peak travel season.
By yourNEWS Media Newsroom
Oil and gas executives are warning the Trump administration that low fuel inventories could push gasoline prices sharply higher this summer if disruptions linked to the conflict with Iran continue.
Energy industry leaders have told White House officials that commercial fuel stockpiles and government reserves used to buffer supply shocks are dropping toward critical levels just as the summer travel season begins, The Washington Post reported Thursday.
“We’re sounding the alarm on these inventories going to record lows,” American Petroleum Institute CEO Mike Sommers said in comments cited by the Post.
The warning comes as the Trump administration escalates military and economic pressure on Iran. President Donald Trump on Thursday vowed additional action and said the United States would target key Iranian oil infrastructure, including Kharg Island, Iran’s main oil-export terminal.
The administration has argued that sustained pressure is needed to force Tehran to abandon its nuclear ambitions and stop threatening global shipping routes.
The Strait of Hormuz remains central to the crisis. Roughly one-fifth of the world’s oil supplies normally pass through the narrow waterway, making any prolonged disruption a major concern for energy markets.
Industry executives told both The Washington Post and Politico that continued instability in the region is steadily reducing inventories around the world.
One industry executive told Politico that inventories are already at “dangerously low levels” and warned policymakers that markets could face serious pressure in the coming weeks.
Some analysts have said further inventory declines could cause oil prices to rise significantly and push gasoline prices above $5 per gallon in some regions. Others have said markets have held up better than expected because of reserve releases and increased production outside the conflict zone.
The Trump administration has pushed back against the most severe forecasts.
White House officials have pointed to record U.S. oil production, releases from strategic reserves and policy steps such as waiving restrictions under the Jones Act to reduce transportation bottlenecks.
Administration officials have also noted that average gasoline prices have fallen from recent highs as markets responded to reports of possible negotiations.
Politico reported last week that administration officials are closely tracking inventory levels while maintaining that the United States remains in a strong position.
Energy experts say the central question is how long the conflict lasts. If shipping through the Strait of Hormuz returns to normal, pressure on prices could ease. If disruptions continue into late summer, inventories could tighten further and increase the risk of higher costs for American consumers.
The White House is now trying to balance its strategic campaign against Iran with growing concern that prolonged instability in one of the world’s most important energy corridors could hit Americans at the gas pump during the busiest driving season of the year.
Original article
Comments