coverage of government. taking you to what the policy is debated and decided all with the support of america's cable companies. c-span 45 years and counting powered by cable. >> both the house and senate return for business today. later this week announced plans to attempt to override the presidency of the resolution repealing an sec crypto currency role members hope to work on the 2025 the 2025 legislative branch spending bill which provides $1.9 billion for house salaries and expenses. the u.s. capitol police would see more funding with an increase to more than $830 million. in the senate lawmakers will work on a judicial nomination. watch live coverage of house on c-span, the center on c-span2 or follow our congressional coverage with c-span now, our free mobile app or online at c-span.org. karen went back with jim burkard

of s&p global commodity insight picky is a vice president and head of research for oil markets, energy and mobility. welcome back to the program tracking thank you. >> host: so tell us about s&p global commodity insight and what kind of research that you do try to s&p global caught insights as part of s&p global. the commodity insights, what we do is we do price assessments for all sorts of energy, david is part of the most well-known key oil benchmark. and we also do a lot of research into what's happening today and what we think will happen in w the enery markets. week out to many years out. what i specifically do is my focus is on the oil market, let's talk about gas because the fourth of july weekend is upon us and a lot of people are going to on the roads. aaa shows national average for gas is $3.50 a gallon. that is about the same as last year but about a dollar lower

than it was in 2022 pick and you talk about the factors that drive the gas price and how, what goes up and down? >> guest: sure. the price of gasoline in the united united states, because reflection of it is what happens in the global crude oil market. the global crude oil price is the biggest single factor that goes into the price of gasoline. when global crude oil prices are high, in 2022 after the russian invasion of ukraine a lot of uncertainty about the future of russian oil supply prices went up that lead to higher gasoline prices. since then production is going up particularly in the united states. crude oil prices are quite a bit lower than they were two years ago and that explains why prices are lower today for gasoline compared with 2022. >> host: since oil is really what drives it by the majority of the price, oil prices hit $87 a barrel yesterday, that's up

1%. so what's driving that? he mentioned the geopolitics. what else? >> guest: oil prices are up from where they were about a month agogo and they go up and down. they will continue to do so but the reason that explains prices going up for the last month is a tighter oil market. so opec+, these are, opec+ our partners that cooperate on oil supply. they have maintained their production restraint. so as demand goes up in the summer in the world which it is because you mentioned americans driving, many of the countries they do as well, so that has led to a tighter market where we're likely to see inventories for oil go down this summer. when you have lower inventories that tends to push prices higher, and that's the dynamic that's underway right now. >> host: we are talking about the global oil markets, gas prices with jim burkard of s&p

commodities. you can call in and ask the question, make a comment. the light are democrats 202-748-8000. it's 202-748-8001 for republicans, and independents it is 202-748-8002. this past may the biden administration released 1 million barrels of gasoline from the strategic reserves. that was designed to push down gas prices. what impact did actually have? >> guest: it's a pretty big global oil market so it takes a lot to have a really discernible impact. i think the impact of that was not so much on the volumes really, the u.s. consumes about 9 million barrels of gasoline a day. in terms of volumes to wasn't massive volume but itas was a sn of intent that the biden administration could, they said this, use these strategic petroleum reserve at some point before the election if they feel gasoline prices are getting too

high. >> host: there is a hurricane in the caribbean right now, hurricane beryl, a category five storm. in fact,t, that's having on oil prices or the supply chain? >> guest: it creates a lot of concern and uncertainty. it depends on where it hits, how much damage it does. it were, and i'm not a meteorologist some not sure where it's going to hit, but if it did say go to florida which i hope it doesn't come that would have an impact on demand. it would probably lower demand for a time. it went to the gold coast, texas or louisiana the question is does it affect the offshore oil platforms or does it affect the onshore refineries are both? it creates a lot of uncertainty with regard to its path and the amount ofeg damage that it could happen. >> host: appointed ask you about oil companies and the profits they are making. seen in reported this and this is a quote from the reporting that says theay top five u.s.-based oil and gas companies by market cap, according to s&p

global, exxon mobil, chevron, conoco phillips, eog resources and schlumberger have raked in more than $250 billion in profits between 2021-23. that's 160% jump compared to the first three years of the pro-big oil chump administration. tragic oil prices are cyclical. they go up and down. when prices go up that tends to help oil company profits. if youou compare 2020 with 2022 the price of oil in 2020 the covid year was $40. i was not a good year for oil companies. you go to 20222 the average price of oil, was about $100 ad that reflects a lot of the uncertainty that was related to the nation of ukraine. if you know with the price of oil is going to be you have a pretty good idea of where oil company profits may be. i think 2020 and 2022 provide two examples of the impact of the oil price on profits.

>> host: president biden has been critical of the oil industry, trying, pushing to an fossil fuels but oil production has broken records over the past three years. >> guest: the u.s. is producing more oil than any country ever has in history. it's a big reason why after the ukraine invasion prices came down. it came down after 2022. they didn't go back up. what drives u.s. production? the u.s. is unique in the world. we don't have one national oil company. we have many private companies and publicly held companies and private companies. and whatub really affects how ty invest is the oil price. it's really as simple as that. when oil prices are high that tends to lead to more investment, more production. when oil prices are low it's the opposite. so the u.s. auto industry is really responsive to changes in the oil price. if there's a de facto regulator

of use when production, it's not the president, it's not congress, it's not a state-owned company but is thehe price of o. >> host: and let's take also now. roll it in maryland, democrat, your first. >> caller: thanks for taking my call. oh, my goodness, you just shattered the republican trump issue talking point about drill, drill, drill. he keeps climbing when he gets back you he will drill, dril and all of a sudden -- one dollar gas at the pump. nobody saying much about the only reason why -- gas price was because of covid and nobody was driving. and now, they want to compare that low price during covid after -- [inaudible] the ukraine war. that's the only reason why gasoline is high now. and so -- [inaudible]

talking point about drill, drill, drill from trump, you know? just like there was nobody moving -- that's why we had no, very little, in. >> host: okay. >> guest: i think the point about prices during covid, when it comes to gasoline prices, every driver knows what the price is, and it's the relative change within our memory. if you were to take inflation voted gasoline prices him quite a bit lower than it or say ten years ago. what if you compare to two years ago, yes, it is lower. if you compare to covid, it's higher. it really depends on the psychology of the consumer and what gasoline price they remember paying and how does that compare with today. so it truly important if the looking back at 2022, one story is comparing it to covid year 2020, it's a different story. >> host: he also mentioned, i

don't know if you can call a policy of drill, baby, drill, right? what impact with that hat is a was a change in administration and that they can more of a priority, what would happen to the market? >> guest: that's an interesting question. the oil price is the single most important factor. now, presidents can impact energy policy obviously and oil policy that it's probably more of a medium to longer term issue. a president could decide to offer more leaks of an offshore gulf of mexico for to encourage more drilling on federal lands. those are not things that are necessary going back production in the next year. the weather wednesday november is probably not going to that big of an impact on production. the oil price will. but if you go out four, five, six years the president can kind of indirectly impact oil production. >> host: and joe in west plains misery republican. good morning. >> caller: gas here is like

three dollars dollars five cents. it just went up from $2.95 to $2.99. how much does a gas station get on a gallon of gas, like five or six cents? also, let's not forget that traders on the floor of the chicago board options exchange, i've been playing the stock market for four years, the market makers on the floor that are trading oil and commodities, there's a heck of a lot to do with the price of anything. .. >> this morning