ICYMI: The Washington Post: Plunging Global Oil Supplies Threaten to Push Fuel Prices Even Higher

The US Strategic Petroleum Reserve is at its lowest level since 1983

Experts warn that even if the Strait of Hormuz opens tomorrow, skyrocketing energy costs will “get worse before [they] improve” 

Washington, DC – The alarm bells keep ringing for Trump and Republicans in Congress as oil and gas executives and energy experts warn that inventories are approaching “unheard-of” levels, which could push already-skyrocketing energy prices even higher. Meanwhile, Trump and Congressional Republicans are desperately trying to gaslight Americans by claiming that skyrocketing gas prices are a “short-term” problem. 

Trump has made it abundantly clear that he doesn’t care about Americans’ pain at the pump, telling CNBC about talks to end the war “I don’t care if they’re over, honestly. I really don’t care,” but even he can’t ignore warnings from his Big Oil donors. Chevron CEO Mike Wirth admitted that inventory levels are “concerning” and a top executive at Exxon warned that the prices of a barrel of Brent crude could “shoot up” to $150 or $160. Even if the Strait of Hormuz opens tomorrow, analysts agree that energy costs are likely to get worse before Americans start to feel relief.  

The Washington Post: Plunging global oil supplies threaten to push fuel prices even higher

Americans face a new round of punishing price increases for fuel and other products as oil and gas inventories plunge to historic lows around the world because of the war in Iran, energy executives and analysts warn.

Fuel stocks are so low, experts said, that even an abrupt agreement between the United States and Iran and an immediate reopening of the Strait of Hormuz — through which one-fifth of the world’s oil and natural gas supplies passed before the war — may not stop fuel prices from soaring anew by the July Fourth holiday.

“These shock absorbers have been surprisingly effective,” Jim Burkhard, global head of crude oil research at S&P Global Energy, said of the deep commercial and government reserves that countries have used to mitigate fuel prices. “But their ability to continue to absorb the shock is diminishing.”

Gas prices averaged more than $4.30 over the past month, according to AAA.

Chevron CEO Mike Wirth and Exxon Senior Vice President Neil Chapman warned last week that oil companies and countries, including the U.S., have run down reserves they tapped after the war began Feb. 28, meaning further price increases are likely…

Analysts are warning consumers to brace for the broader energy crunch — especially prices at the gas pump — to get worse before it improves.

“Even if the strait magically opens tomorrow, it is not as simple as snapping your fingers and everything goes back to the way it was,” Shuchart said. “The market can’t seem to wrap its head around how tough a situation we are in right now.”