The OPEC decision “drove traders into a buying frenzy” because it “guarantees a tight supply picture in November and December,” Rystad Energy senior oil markets analyst Louise Dickson wrote in a note Tuesday.
Psaki pointed to a series of actions taken by the Biden administration, including working to revive energy facilities knocked offline by Hurricane Ida, releasing barrels from the Strategic Petroleum Reserve and the Federal Trade Commission monitoring the gasoline market.
Psaki also noted the White House urged a compromise solution that was reached earlier this year at OPEC, allowing for a boost to production.
Natural gas hits near-13-year high
Natural gas prices surged nearly 10% on Tuesday to finish at the highest level since December 2008.
The price spike suggests Americans will pay more to heat and power their homes this fall and winter as temperatures drop. Natural gas is the most common way to heat homes and is also the leading fuel source for the US electric grid.
US natural gas futures finished on Tuesday at $6.31 per million British thermal units. They were less than half that a year ago, spiking 140% over that span.
The good news is that despite the rally, natural gas remains far cheaper than the 2008 peak when it topped out at $13.58 per million BTUs. And US natural gas prices haven’t increased nearly as much nor as high as they have overseas.
European natural gas prices have spiked to all-time records, raising fears that hundreds of millions of people could be facing cold homes or inflated energy bills.
Still, high energy prices could weigh on the economic recovery, raise the cost of living and exacerbate inflation fears.