Gas prices are slipping but stubborn demand and reluctance from oil companies to expand production means its not enough, says Biden energy adviser

Amos Hochstein, an energy advisor to the Biden Administration, said that the recent small relief in gas prices is not enough and that it is still contributing to tight conditions in the energy market.

Hochstein said in an interview with CNBC that they are pretty pleased with what they are seeing. As of 10:30 a.m., the price of crude was $92.83 a barrel. After spiking above $5 earlier this summer, the average national gas price is at $4.163, down from $5 earlier in the year.

It's moderate compared to estimates from banks like JP Morgan, which said oil could go as high as $380 a barrel and gas could go as high as $8 a gallon.

At a time when the third largest oil producer is at war, that's remarkable.

He noted that consumers are still feeling the pain of high prices, as Russia continues to slash energy supplies off the market andOPEC+ struggles to fill the gaping supply hole Part of the reason why prices have gone up and Europe is preparing for a possible energy crisis this winter is because the cartel only met about half of its production hike.

Hochstein blames the shortage on two things, the first being that energy demand hasn't slowed despite rising prices, and the second being that summer is a peak demand season for gas.

Hochstein criticized domestic energy companies for not increasing production even though they were making a lot of money from rising oil prices. In the past two quarters, oil and gas companies have made more money than ever, with Shell and Exxon making more money than any other company.

We have been very clear. The president has been clear for a long time. He wants the oil and gas industry to increase production. They have the necessary permits.

Much of the additional profit was at the expense of the consumer. The administration is working with oil and gas companies to increase production.