"The twin threats of inflation and high gasoline prices continued to drag on the Biden administration this week, and analysts were beginning to predict that it will take strong economic medicine to deal with the malaise.
The price of regular U.S. gasoline hit yet another record yesterday, averaging about $4.67 per gallon, according to AAA. Prices typically climb during the summer driving season, but 75 percent of drivers told the automobile association in a recent survey that they’d change their driving habits if the price hit $5 a gallon.
That phenomenon — which economists call demand destruction — will ultimately lead to lower prices, but high prices will be a brutal reality in the meantime for people who have to drive to work in person, Kevin Book, managing director at ClearView Energy Partners LLC, said in an interview. There’s also a historic correlation between high gasoline prices and recessions, Book said. The implications could stretch from pocketbooks to election results."
Mike Lee reports for E&E News June 2, 2022.
SEE ALSO:
"Biden Decides On Saudi Visit As OPEC+ Boosts Oil Production" (AP)
"OPEC Plus Agrees To A Bigger Increase In Oil Supply. But Prices Keep Rising." (New York Times)
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