White House will 'make sure gas prices remain affordable' heading into summer, Biden advisor has said

President Joe Biden’s top economic advisor stated Thursday that the White House would ensure gas prices remain affordable, hinting at a potential use of the Strategic Petroleum Reserve (SPR).

“We’ll continue to closely monitor, ensuring gas prices remain affordable for many American families as we head into the summer driving season,” said National Economic Advisor Lael Brainard at Semafor’s World Economy Summit.

Gasoline futures have surged nearly 29% this year, with current pump prices averaging $3.67 a gallon, according to AAA. U.S. crude oil has risen 15% year-to-date due to stronger demand, tighter supplies from OPEC+ production cuts, and rising geopolitical risks in the MidEast and Eastern Europe.

“We’re closely watching international oil markets and domestic gas prices. We want to ensure gas prices stay within current ranges,” Brainard added. U.S. crude oil reached a peak of $87.67 per barrel this year before easing to around $83 a barrel.

Iran’s recent air assault on Israel has raised concerns of wider regional conflict impacting crude oil supplies. The White House is monitoring “geostrategic risk” in the Middle East, Brainard noted.

Ukraine’s drone strikes on Russian oil refineries also concern the Biden administration. Defense Secretary Lloyd Austin warned last week that these attacks could impact the global energy situation.

White House climate advisor John Podesta stated Tuesday that Biden would ensure gasoline remains affordable, noting past use of the SPR to ease pump prices.

The White House released 180 million barrels from the SPR in 2022 as oil prices surged following Russia’s invasion of Ukraine. The reserve currently stands at about 365 million barrels, the lowest level in decades, a point of contention with Republicans.

Russia’s decision to deepen its cuts by 470,000 barrels per day to meet its OPEC+ pledges could pose problems. JPMorgan warned that Brent crude oil prices could approach $100 by September without countermeasures.

Oil prices have retreated over 3% this week as war fears eased. However, Daniel Yergin, vice chairman of S&P Global, said oil prices above $90 a barrel pose problems for the market, inflation, and reelection prospects for incumbents.