Fed’s Logan believes US oil companies are not expected to offer immediate relief to consumers

US Oil Producers Unlikely to Offer Immediate Relief, Says Dallas Fed President

Lorie Logan, President of the Dallas Federal Reserve, stated on Thursday that American oil companies are not expected to increase production in the near future, meaning consumers will continue to face elevated gasoline prices. According to Logan, while domestic producers indicate they would consider drilling if oil prices approached $70 per barrel, this threshold is significantly lower than the current market price, which hovers around $110 per barrel.

Logan emphasized that oil companies require prices at or above their breakeven point to remain stable for an extended period before they are willing to invest in expanding output. Such sustained pricing is necessary for firms to commit to the investments that could eventually ease costs for consumers.