On Thursday’s broadcast of Bloomberg’s “Sound On,” White House Special Presidential Coordinator for Global Infrastructure and Energy Security Amos Hochstein stated that one reason why oil prices have surged and gas prices “is that Bidenomics works.” Because President Joe Biden’s policies have led to a strong economy, which has boosted demand.
Bloomberg Washington Correspondent and host Annmarie Hordern asked, [relevant exchange begins around 44:00] “So, we have crude prices, WTI above 90 today. So, that’s a significant development. The IEA says we’re going to see a significant shortfall. And we’re past peak driving season here in America and we have prices approaching $4 a gallon. What does the administration have in its toolbox to potentially insulate consumers at the pump?”
Hochstein answered, “So, let me make a couple of points, because you’re right, the facts are there. The President has been clear that he wants to make sure that American families have less of a burden and that costs don’t hurt American families, especially families that have more than two drivers, and he is still committed to that. We see a couple of factors that are coming into the oil price increase: One is…OPEC has decreased supply and constrained supply and they did that when prices were significantly lower than they are today. Since that decision, prices have come back up, to some degree because of that.”
He continued, “The other factor is that Bidenomics works. We have an economy that is strong and we have a labor market that is strong where wages are higher than costs, and when that happens, when you have a strong economy and stronger than people had expected to have at this point as resilient as it has [been], then you also have demand growth. So, there is stronger demand when you have stronger manufacturing and stronger productivity, in comes demand growth.”
Hochstein added that he thinks driving season is just now in the process of ending, inventories should build up, and that the Biden administration hasn’t restricted oil production to a level that is hurting the energy system because production is at “record” levels.
Follow Ian Hanchett on Twitter @IanHanchett
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