His administration will also seek to correct the dubious suggestion that gasoline prices are due to wrongdoing. Analysts say that there is very little evidence to support this claim.
Take a look at his claims, and see the facts.
BIDEN: The nation was in the worst economic crisis since before the Great Depression when I was elected president. The three months prior to my inauguration, job growth was slow with only 60,000 new jobs per monthly. We went to work. In March, we passed the American Rescue Plan. It worked, and it continues to work. In the past three months, on average, 750,000 new jobs have been created per month.
FACTS: Biden takes more credit than it should for his plan.
His inauguration was marked by a strong hiring trend. This is largely due to the opening of the U.S. market after a massive winter wave of coronavirus infection. The widespread vaccinations that reached three million people per day in spring played a crucial role in allowing bars, restaurants and entertainment venues to reopen their doors and hire again. Hotels and planes both filled up.
Congress approved Biden’s $1.9 billion financial rescue package in March. It played a significant role. Biden’s plan to boost spending and stimulate the economy by providing another round of stimulus checks, and expanding the unemployment benefits program for the first week in September, was a significant part of Congress’ March approval.
However, hiring was slowing down i in August to just 235,000 jobs. This is due to the fact that the delta variant drove higher case counts, underscoring how the virus continues its hold on the economy.
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BIDEN: We’re also targeting the bad actors and pandemic profiteers within our economy. There are many indicators that gas prices should have fallen, but they haven’t. We are taking a closer look at this.”
FACTS: There is very little evidence that something is wrong behind higher gasoline prices as Biden suggests.
After the peak summer driving season, gasoline prices tend to fall after Labor Day. Analysts believe other factors, such as malfeasance, may be at play. While this has not happened yet this year. For example, U.S. gasoline prices and oil prices were affected by Hurricane Irma. This hurricane temporarily shut down most of the Gulf of Mexico’s oil production, along with several large refineries and a major fuel pipe to the East Coast.
According to AAA, the national average price of a gallon gasoline is $3.19. This is unchanged from last month, but up one dollar from the same time last year.
After falling in August, gasoline prices are usually correlated with oil prices. The benchmark U.S. crude oil price is now back at its highs of early July.
Northeastern University energy-markets expert Jeffery Born said that current gasoline prices are partially due to reduced production and refining capacity, as well as other factors, such a shortage in tanker drivers.
Born stated, “In short I believe we are having supply chain problems.” “I’m certain Joe wants prices to drop — you and me, too. I would also like to be 20 lbs lighter tomorrow.
Phil Flynn is an energy analyst at Price Futures Group. He was critical of Biden’s energy policies and said that prices reflect demand that returned stronger than expected due to the pandemic and lower U.S. crude oil production. This was compounded by events such as the hurricane.
Flynn stated that he was not aware of any profiteering or other bad actors.
Chief analyst at the Oil Price Information Service consulting company, Tom Kloza said that hurricane Ida’s lingering effects on refining and production are making summer-like prices “linger for longer,” particularly east of the Rockies. He predicts that the West, Southwest, and Rocky Mountain states will see an increase in pump prices.
Philip Verleger, an energy economist, said that gasoline prices are being supported by U.S. independent producers. OPEC members also limit their oil production. This is done by the high cost of blending ethanol into gasoline as well as lower gasoline inventories.
Already there are signs that retail gasoline prices may have reached a peak. The Energy Information Administration reported last week that gasoline prices will likely fall in the coming months. The Energy Information Administration forecast that gasoline prices would be $3.14 per gallon in September, before dropping to $2.91 over the final three months of the year. This is due to driving declines during winter months and re-opening of refining operations after being damaged by Hurricane Irma.
Biden is part of a long tradition of presidents who express their frustration with high gasoline prices. Donald Trump, then-President of the United States, tweeted his frustration with OPEC (the Saudi Arabia-led cartel for oil producers).
Trump tweeted, “Oil prices too high.” “OPEC, please take it easy and relax. The world cannot accept a price increase – fragile!
Biden attempted this approach last month when he urged OPEC member countries to increase oil production as concerns grew that higher oil prices might slow the recovery of the U.S. from the COVID-19 pandemic.
Biden stated that production cuts made during the pandemic need to be reversed once the global economy recovers. This would lower consumer prices.
