Crude oil fell to $100 a barrel, which also pushed gas prices down.
This comes days after President Joe Biden announced a historic release of oil reserves from the Strategic Petroleum Reserve beginning in May.
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dr Ramanan Krishnamoorti, chief energy officer at the University of Houston, spoke to ABC13 about when we will see prices drop and feel the relief in our wallets.
“We’re likely to see a 25 to 30 cent drop in gas prices and that should happen fairly soon. Probably by the end of this week,” said Dr. Krishnamoorti.
He also said that Americans are already seeing the impact of the news that Biden will release a million barrels of oil a day from the US emergency reserve.
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“Oil markets don’t move based on actual supply and demand, they move on actual supply and demand news,” said Dr. Krishnamoorti.
So when will we see grocery store prices drop?
dr Krishnamoorti said the process will be slow.
“We’ve seen a slow increase in the prices of things in stores, things like groceries and groceries. Milk has slowly risen. We’ll see a similar type of decline, but it won’t be a strong one,” he said. “You have to remember that gas prices are 50% higher compared to a year ago and even with that 45% or 30% drop they are still 30% to 40% higher. So, yes, the prices of our commodities will come down a bit, but it won’t get back to where we were a year ago.”
But if those prices go down, will they stay there?
“Crude markets are extremely volatile and the volatility is due to a very, very tight supply and demand situation,” said Dr. Krishnamoorti. “If I were to make a forecast for the next six to nine months, we would be 50 to 60 cents lower than today at the end of the year.”
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https://abc13.com/oil-prices-texas-gas-president-joe-biden-crude/11709907/ Gas prices will fall by at least 30 cents by the end of the week, according to the University of Houston’s chief energy officer