Gas Prices on the Rise: Biden’s Bidenomics Agenda Faces Potential Headache
Gas prices have been steadily increasing over the summer as President Joe Biden promotes his Bidenomics agenda. Last week, U.S. oil prices jumped nearly 4%, and the national average for a gallon of gas reached $3.75, the highest since November 2022. These rising prices could pose a new challenge for Biden as he looks ahead to his 2024 reelection campaign.
Global oil prices have increased by 16% since late June, rising for five consecutive weeks. The trend is expected to continue in August and September due to production cuts by key oil-producing countries such as Saudi Arabia, Russia, and other OPEC+ members. These production cuts, announced in early July, have significantly contributed to the price increases, according to Natasha Kaneva, J.P. Morgan’s head of global commodities strategy.
In addition to the OPEC+ production cuts, the summer heat has also impacted domestic oil refining capacity, while consumer demand for energy has surged. This combination has further fueled the rise in gas prices, causing concerns for the Biden administration. There is currently a gap of around 500,000 barrels per day between global oil supply and demand, according to a July report by the International Energy Agency.
The Biden administration is reportedly monitoring the increasing gas prices closely. However, the president’s Bidenomics agenda, which focuses on growing the economy from the middle and bottom, has not received widespread approval. Recent polling data from Real Clear Politics shows that only 38% of Americans approve of Biden’s handling of the economy, while over 57% disapprove.
Earlier this year, Biden and his top officials traveled across the country to promote the Bidenomics tax-and-spend agenda. The president plans to rely on this agenda as a key selling point in his reelection bid. However, the rising gas prices may signal a sustained period of higher costs at the pump, similar to the summer of 2022 when prices peaked at $5 per gallon in June.
During the 2022 gas price crisis, Biden released millions of barrels from the Strategic Petroleum Reserve (SPR) to alleviate the situation before the midterm elections. However, the SPR has not been fully replenished, and experts estimate that it may take decades to restore it to pre-drawdown levels.
Last year’s oil price spike also contributed to inflationary pressures, causing financial burdens for American consumers and presenting political challenges for the Biden administration. Republicans criticized the administration’s energy policies and blamed them for the surging gas prices, which added to the financial strain already caused by inflation.
As of now, the White House has not responded to requests for comments on the rising gas prices. With ongoing production cuts and factors like increased consumer demand, it remains to be seen how the Biden administration will tackle this potential headache in relation to their Bidenomics agenda.
In conclusion, gas prices have been on the rise, posing a challenge for President Joe Biden and his Bidenomics agenda. Global oil prices have increased, and domestic factors such as reduced oil refining capacity due to summer heat have further contributed to the price surge. The gap between global oil supply and demand raises concerns, and Biden’s handling of the economy has faced scrutiny. The president plans to rely on his economic agenda for his reelection campaign, but the rising gas prices may impact his plans. The Biden administration released barrels from the Strategic Petroleum Reserve last year but has not yet fully replenished it. Last year’s oil price spike also exacerbated inflationary pressures, leading to financial burdens for American consumers. The White House has yet to comment on the increasing gas prices, leaving uncertainty about their approach to the issue.
