Clipper Oil: Latest Fuel News - Gas Prices Could Spike Again This Winter, Yellen Warns

Latest Fuel News

September 2022

Gas Prices Could Spike Again This Winter, Yellen Warns

Treasury Secretary Janet Yellen on Sunday warned that gas prices may spike again this winter.

Yellen told CNN’s Dana Bash on “State of the Union” that gas prices could rise due to the European Union largely halting Russian oil purchases this winter and banning provision of services that allow Russia to ship oil by tanker.

“It is possible that that could cause a spike in oil prices,” Yellen said. Continue reading here (Source: The Hill).

Americans Should Brace for Higher Natural Gas Prices, Chevron CEO Says

Prices at the pump have fallen along with the cost of a barrel of crude oil. But the CEO of Chevron, one of the world's largest energy companies, thinks consumers in the United States should be prepared for a shock when they get home heating bills this winter.

Chevron chairman and CEO Mike Wirth said in an interview with CNN's Poppy Harlow that "there's certainly a risk that costs will go up" for American consumers.

Wirth is not predicting a rise of the magnitude seen in Europe, where prices have skyrocketed, largely due to the impact of Russia limiting exports of natural gas. The energy situation in the United Kingdom and on the continent is far more dire.

Continue reading here (Source: CNN Business).

OPEC Upbeat on Global Economic Growth

Global economic growth is set to remain robust at 3.1% this year and another 3.1% next year, OPEC said on Tuesday in a forecast suggesting that the cartel expects healthy oil demand growth despite market fears of recession.

In its September Monthly Oil Market Report (MOMR) published today, OPEC made no changes in its economic growth estimates and sounded an upbeat note about the trend of the global economy for 2022 and 2023.

The cartel expects the global economy to grow by 3.1% both this year and next, and although it revised down its estimate of the Eurozone economy, OPEC still sees 3.1% growth in 2022 and 1.7% increase in the euro area in 2023. That’s contrary to recent forecasts from analysts and economists who expect the Eurozone and several EU member states to be plunged into recessions as early as this year due to soaring energy prices weighing on inflation, industries, and consumer sentiment. Continue reading here (Source: OilPrice).

Soaring Energy Costs Could Threaten Future of Electric Cars, Experts Warn

Soaring energy costs are threatening the future of the electric car, industry bosses in Germany have warned.

A rise in electricity prices as well as in raw material costs and availability, a chronic shortage of parts, and a widespread reduction in disposable income are having a considerable impact on the production and sales of cars.

If the trend continues, there is also concern that there will be a knock-on effect on investors who will lack incentives to build charging facilities, making electric cars less attractive – because they would be more impractical – to run. Continue reading here (Source: The Guardian).

European Power Prices Drop As Nuclear, Wind, and Solar Surge

Higher nuclear power generation in France and more solar and wind supply out of Germany eased Europe's prompt power prices early on Monday. Despite the brief relief, the EU continues to consider ways of capping power and, possibly, gas prices in a bid to help struggling consumers and businesses.

German power prices for Tuesday delivery dropped by 9.5% from the Monday baseload delivery prices to $395 (390 euros) a megawatt-hour (MWh), per Reuters estimates. In France, the day-ahead power prices were also down by nearly 10%, falling by 9.7% at $435 (429 euro) per MWh.

In France, nuclear availability has risen over the past days to 48% on Monday, while solar and wind power generation are expected to rise in Germany this week. Continue reading here (Source: OilPrice).

Gas Prices Could Dip Below $3 A Gallon As Summer Driving Season Wraps Up and Oil Declines

The average price of a gallon of gas in the US fell to $3.71 Monday, which is $0.26 lower than four weeks ago but remains $0.54 higher than a year ago, according to AAA data.

The recent decline in oil prices have helped ease sticker shock at the pump. Currently, a gallon of gas is at its cheapest level since early March, and Brent crude is trading at about $94.

Andrew Gross, a spokesperson for AAA, said that typically cheaper oil means more relief for drivers, and that it bodes well for prices in the future. Continue reading here (Source: Markets Insider).