oil producers from the Gulf Coast up to Canada are still miffed at the Biden white house for halting construction the keystone pipeline and ending new drilling leases on federal land.
Phil Flynn at The PRICE Futures Group says it's hard to see an upside to the tens of thousands of jobs being lost and the U-S having to depend on foreign oil again.
“It's going to basically transfer the power of fossil fuels back to OPEC and their favorite conspirator Russia,” he says. “These guys are going to have more sway over the price of oil.”
Flynn says the good simply does not outweigh the bad in this scenario.
“To penalize U.S. energy and gas producers, while at the same time propping up producers in other parts of the globe, it's really doing a disservice not only to the U.S. worker, but the U.S. economy,” he says.
He warns gas prices will go up, along with everything else consumers pay for.
“No matter what President Biden does, the world is still going to need oil. They're going to need it for many years to come. And by some of these draconian measures that he's putting into place, it's really just going to hurt the U.S. economy and U.S. growth.”