Wright hedges on gasoline relief as pump prices set a Labor Day record
Energy Secretary Chris Wright offered a cautious read on the gasoline price outlook Sunday, telling three network programs he thinks prices are more likely to fall than rise but declining to commit to any firm…
Key takeaways
- U.S. regular gasoline averaged $4.15 per gallon on Sunday, the highest Labor Day weekend level on record, according to AAA.
- Energy Secretary Chris Wright said prices are more likely to fall than rise but declined to commit to a firm prediction across appearances on CBS, CNN, and ABC.
- Wright cited softening post-Labor Day demand, rising production, and eased environmental rules for summer gasoline blends as reasons prices could decline.
- Diesel prices are also at all-time highs, raising the political stakes with midterm elections less than two months away.
- The global crude benchmark closed above $96 per barrel on Friday, its highest close in roughly six weeks, as renewed hostilities pushed oil higher.
Energy Secretary Chris Wright offered a cautious read on the gasoline price outlook Sunday, telling three network programs he thinks prices are more likely to fall than rise but declining to commit to any firm prediction. U.S. regular gasoline averaged $4.15 per gallon on Sunday, per AAA data, the highest Labor Day weekend level on record. Diesel prices, which feed through into broader economic costs, are also at all-time highs, amplifying the political stakes with midterm elections less than two months out.
Wright appeared on CBS's "Face the Nation," CNN's "State of the Union," and ABC's "This Week," running through the same supply-demand thesis on each. U.S. gasoline demand typically softens after Labor Day, he argued, while production is set to increase and the administration has moved to ease environmental requirements for summer gasoline blends. "Gasoline production is about to go up and demand is about to go down," he said on CNN. "So, if I had to guess, they're more likely to go down than go up." On CBS, he allowed that a move lower in prices is "not an unreasonable expectation," a formulation that still stopped well short of any firm pledge.
Futures signal and its limits
On ABC, Wright pointed to gasoline futures markets as supporting evidence, noting that the market "thinks gasoline prices are going to move meaningfully lower," then adding: "trust the market, certainly don't trust my predictions." The caveat is worth keeping. Out-month futures are volatile and carry no reliable read-through to what retail consumers see at the pump. Pump prices have been climbing in recent weeks as a flare-up in hostilities pushed crude oil higher, and the global benchmark ended Friday above $96 per barrel, its highest close in roughly six weeks.
What to watch at the open
More oil has appeared to be moving through the Strait of Hormuz recently, yet the crude price has continued to rise. Fresh weekend conflicts raise the prospect of another leg higher when markets open Monday. How crude trades in the first session of the week is the print to watch.