Volatility continues to impact oil markets, as emphasized by U.S. Energy Secretary Jennifer Granholm, who once again called for an increase in supplies.
During an interview with CNBC’s Sri Jegarajah, Granholm addressed the state of oil markets, acknowledging the presence of a highly volatile environment that the White House is closely monitoring.
“Given the emotional nature of these markets, we are deeply concerned about their trajectory,” expressed the energy secretary.
Granholm advocated for an increase in output in order to stabilize prices.
“We need to see more supply… Exorbitant prices can be hazardous,” she noted. “Ensuring affordable transportation for individuals is paramount, which means guaranteeing a consistent supply.”
As a voluntary measure, some members of the Organization of the Petroleum Exporting Countries and their allies (known as OPEC+) are reducing production by a combined 1.66 million barrels per day until the end of 2024. Additionally, major players Saudi Arabia and Russia have announced further voluntary decreases in July and August, amounting to 1 million barrels per day and 500,000 barrels per day of exports, respectively.
The Biden administration continues to face the challenge of high crude oil prices and prioritizes their reduction.
“We want prices to decrease. The president is firmly focused on the impact on everyday individuals who depend on affordable transportation,” Granholm emphasized.
Historically, the U.S. has actively advocated for lower prices at the pump to alleviate the burden on consumers and combat inflation. Washington has consistently urged OPEC+ producers to contribute to this effort by increasing their output – a situation that led to a brief conflict with Saudi Arabia in October of last year.
The U.S. is currently experiencing lower inflation, with the consumer price index showing a 3% year-on-year increase in June.
Renewables
Granholm also highlighted the significance of transitioning to renewable energy, a major topic of discussion at this year’s energy summit.
“China and the United States are the world’s largest emitters… Their citizens are already feeling the impacts of extreme weather events,” Granholm mentioned, expressing the U.S.’s interest in collaborating with China to promote clean energy deployment.
“We must act comprehensively and urgently to deploy clean energy everywhere. Our planet is in jeopardy, and we must address this crisis,” she added.
Correction: This story has been updated to include a quote from U.S. Energy Secretary Jennifer Granholm regarding supply and production.
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