All articles tagged with #energy economics
The cancellation of Nevada's Esmeralda 7 solar project highlights the U.S. government's shift away from streamlined, cost-effective renewable energy development on public lands, favoring policies that hinder large-scale clean energy projects and favor fossil fuels, ultimately risking higher costs and slower progress in America's energy transition.
The OPEC+ alliance is facing the risk of a repeat of last year's oil market boom and bust as Brent crude prices surged above $90 a barrel, with analysts warning of a potential increase to $100. Despite robust fuel demand and geopolitical tensions in the Middle East, Saudi Arabia and its partners have signaled their intent to continue squeezing supplies. The situation mirrors the market narrative of 2023, when high oil prices led to fears of demand destruction and a flood of additional supplies, ultimately causing a sharp drop in Brent futures. The outcome of the next OPEC+ meeting in early June will be crucial in determining whether history will repeat itself.
Gasoline prices are on the rise due to refinery constraints and higher oil prices, with the national average at $3.35 per gallon. Severe weather and power losses have stunted US refining, leading to potential increases in retail gas prices. The Midwest and western states are facing significant price hikes, with California averaging $4.83 per gallon. US crude futures surged above $80 per barrel, despite OPEC+ extending output cuts. Expectations of continued production cuts have contributed to the upward trend in crude oil prices.