Oil Analyst Peter Beutel Says Higher Interest Rates Could Mean Lower Gas Prices

HARTFORD, CT (WCBS 880) – Oil company earnings won’t drive down prices at the gas pump, but one oil analyst has an idea about what might.

WCBS 880 Connecticut Bureau Chief Fran Schneidau With Oil Analyst Peter Beutel

The embarrassment of riches revealed by big oil company earnings won’t help to level off gas prices at the pump, according to oil analyst Peter Beutel, who says the key will be what the Federal Reserve does with interest rates.

“[If] Bernanke says ‘No, we’re not going to give anymore easy credit. We’re going to start raising interest rates’ then there is a very good chance that oil prices could come down,” Beutel told WCBS 880 Connecticut Bureau Chief Fran Schneidau.

Beutel said these rising prices are not the result of ENRON-like profiteering. He says if interest rates do rise we could see, $3, even $2 a gallon gasoline again, in five or ten years.

Other factors Beutel points to are “how refineries get back from maintenance this season, what the economy is doing, and what the overall picture is for credit.”

Meanwhile, Rep. Steve Israel of Long Island says it’s time to tap into the nation’s Strategic Petroleum Reserve.

WCBS 880 Long Island Bureau Chief Mike Xirinachs With Rep. Steve Israel

He says doing so would immediately lower the price of fuel.

“[It would be a reduction of] about 20 percent immediately, 20 percent reduction at the pump, and could be as much as 35 percent within ensuing days,” Israel told WCBS 880 Long Island Bureau Chief Mike Xirinachs.

Israel admits that this would only be a short-term solution, saying the only long-term solution is a change in energy policy.

“It is time for a true energy policy that will end this addiction, this expensive addiction, to foreign oil,” says Israel.

  • Gil Neveaux

    ‎184 views on you tube so far..Paying @ the Pump http://www.youtube.com/watch?v=1tShNFne9tc(paying @ the pump)

  • jerseyjoey

    This is a jew line of BS. tell it to the liberals.

  • jeff

    Tapping into the strategic oil reserves is like creating more parking spaces at places like commuter rail stations, you create 1000 more spaces, you then get 1500 more cars…..It will be a short term solution to a long term problem……Plus if the feds tap into the reserves and a real disaster happens in this country where we will need the oil, then we may not have it and everyone will be looking at the president ONCE again……..I walked past a mcdonald’s on Saturday at 2:30 in the afternoon and i was amazed at how the drive thru was backed up almost into the street but the parking lot was almost empty………It amazes me how some people complain about gas prices but will leave their cars idling in line when they don’t have to……..The oil companies are greedy no doubt……..But they cant charge it if they cant get it from the public…….We all, rich and poor have to take steps to conserve energy

  • Gregory

    The Obama administration can not implement socialism, if higher interest rates stop inflation and lower gas and oil prices. Look for no change in the Fed interest rate and more printing of money. Unless the House refuses to pass a debt limit increase and / or gets substantial spending cuts, the U.S. will be forced into social chaos and increasing poverty for those that have any savings. It’s 1930’s Russia; it’s present day Zimbabwe; take your pick.

  • E

    The lack of manipulation would lower gas prices

  • Bill

    The same fracking excuse from an oil “analyst” (another a-hole for a speculator) who probably speculator the end of the world and raise oil price to $200 a barrel (within 6 months probably)

    • Steve

      No, Bill – not really.
      Higher interest rates = stronger US dollar = speculators unwind their current oil investments (which are currently driving up the price). Of course, Khadafy hasn’t helped us either.

  • p

    50,000 Korean War National Museum supporters can use charity search engines.

  • ss

    A stronger US Dollar would lower gas prices.

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