(The Hill) — U.S. Energy Secretary Jennifer Granholm on Sunday projected gas prices to continue falling but expressed uncertainty given potential changes in global events that could affect supply levels.
In an appearance on CNN’s “State of the Union,” Granholm cited a recent short-term outlook from the Energy Information Administration that predicted that the average price for a gallon of gasoline would dip to $3.78 in the fourth quarter.
“We hope that that’s true,” Granholm said.
“But, again, it can be impacted by what’s happening globally,” she said. “The president has done more than any president in history to make sure that the price, insofar as he’s got control, continues to decline, and has included asking for increased production both domestically and overseas.”
After multiple months of gas price increases, in part fueled by Russia’s invasion of Ukraine, gas prices surpassed an $5 a gallon for the first time. However, prices have steadily declined since mid-June, falling below $4 last week and standing at $3.96 as of Sunday, according to AAA.
The average price in South Carolina on Sunday was $3.51.
Howver,with no end in sight to the war in Ukraine and the European Union set to dial back crude oil imports from Russia over the coming months, Granholm reiterated that the decline could change based on global events.
“Gas comes from oil, and oil is traded on a global market,” Granholm said. “And global events affect the price of oil. But the president has taken unprecedented steps to try to moderate supply and demand by releasing a million barrels per day from the Strategic Petroleum Reserve.”
The EIA’s latest outlook included similar sentiments while also acknowledging an economic downturn could result in reduced demand from lower energy consumption.
“The August Short-Term Energy Outlook (STEO) is subject to heightened uncertainty resulting from Russia’s full-scale invasion of Ukraine, how sanctions affect Russia’s oil production, the production decisions of OPEC+, the rate at which U.S. oil and natural gas production rises, and other contributing factors,” EIA’s forecast reads.