Washington Watch: Janet Yellen says she expects soaring oil prices to stabilize

Posted By: EN Todayon: September 18, 2023In: General Energy News, Oil & Gas News

Treasury Secretary Janet Yellen on Monday said she thinks oil prices will stop rising but that the Biden administration is watching carefully.

“My expectation is that they will stabilize, but we will just have to keep an eye on it,” Yellen said in a CNBC interview.

Oil prices
CL00,
+0.74%
are at their highest level this year after three straight weekly gains pushed crude above $ 90 per barrel.

Asked if the administration was considering any action, Yellen said that President Joe Biden wants to make sure that gas prices remain affordable for Americans. She noted that prices are still down over $1 from the price in the summer of 2022.

“China coming back on line and the continuation of the production cuts by Saudi Arabia has lifted oil prices somewhat. We’re monitoring the situation very closely,” Yellen said.

Past releases of oil from the Strategic Petroleum Reserve have been important in holding down oil prices, she added.

Yellen said she was pleased with recent economic trends, noting that inflation is coming down while the job market has remained very healthy.

The Treasury Secretary said it was premature to forecast what the United Auto Workers strike against the Big 3 auto companies means for the economic outlook.

“I’m pleased by what I see in the economy,” Yellen said.