While the U.S. oil output is recovering from the pandemic lows, the sanctions on Russian oil have cut into the country’s oil stockpiles. With limited scope for further reserve release, the average price at the pump is expected to top $6 by September. And President Biden’s recent letter to oil refineries about high gasoline prices is not likely to help curb the price increases. The rising energy prices are benefitting the oil and gas stocks.
On the other hand, President Biden has suggested that the United States has a chance of turning to green energy. However, the transition might be affected by the recessionary concerns.
