US Secretary of Energy Jennifer Granholm during a daily news briefing at the White House in January 2023.
Alex Wong | Getty Images News | Getty Images
- Volatility is still weighing on oil markets, US Energy Secretary Jennifer Granholm said on Saturday, repeating calls for additional supplies.
- Jennifer Granholm said she expects U.S. oil demand to rise to 12.5 million barrels per day this year and to gain further in 2024.
- “We want prices to come down. The president is really focused on the consequences for real people who need to get to work and can’t afford that premium,” Granholm emphasized.
Volatility is still weighing on oil markets, US Energy Secretary Jennifer Granholm said on Saturday, repeating calls for additional supplies.
Asked to comment on the state of the oil markets, she told CNBC’s Sri Jegarajah that “there’s no doubt there’s an unstable environment and … there’s a lot of indebtedness” — a situation the White House is monitoring.
“There is a lot of emotion in these markets, and so we are deeply concerned about where things are going,” the energy secretary added.
Granholm said she expects U.S. oil demand to rise to 12.5 million barrels per day this year and to make further gains in 2024.
Despite this, Granholm also called for additional output to help lower prices.
“We want to see more supply… It becomes dangerous when prices are this high,” she said. “I think the prudent course is to make sure that transportation is affordable for people, and of course that means making sure that supply is stable.”
Some members of the Organization of the Petroleum Exporting Countries and their allies – collectively known as OPEC+ – are voluntarily cutting output by a combined 1.66 million barrels per day. Day until the end of 2024. Coalition heavyweights Saudi Arabia and Russia have announced further voluntary cuts in July and August totaling 1 million barrels per day. Day at the end and 500,000 barrels per Export, respectively further.
High crude oil prices remain a challenge for the Biden administration, and lowering costs remains a priority.
“We want prices to come down. The president is really focused on the consequences for real people who need to get to work and can’t afford that premium,” Granholm emphasized.
The US has historically fought for lower prices at the pump in an effort to ease the burden on consumer households and curb inflation. Washington has repeatedly called on OPEC+ producers to support this effort by lifting their production – culminating in a brief war between branches with Saudi Arabia last October.
The US is now facing lower inflation, with the consumer price index showing a 3% year-on-year increase in June.
Granholm also discussed the importance of transition to renewable energy – a central topic at this year’s energy summit.
“China and the United States are the largest emitters in the world… Their citizens are feeling the effects of these extreme weather events,” Granholm said, adding that the United States is eager to “find an oasis” by working with China to implement clean energy.
“We have to do everything, everywhere, at once. Implement, implement, implement clean energy. Because if we don’t, our planet is on fire and we have to deal with it.”