Asphalt, the heaviest part of crude used in road and home construction, could see a surge in demand as the $1 trillion infrastructure bill would provide record amounts of funding for highway improvements. But all that depends on the bill making it to the president's desk to be signed into law.
That legislation also includes critical language that would provide five years of funding stability for the federal-aid highway program and other surface-transportation programs that are soon set to expire. Reauthorizing surface transportation programs was not easy, even before things got so polarized on the Hill. And in this go-around, the stakes are even higher as the Highway Trust Fund used to reimburse states for road projects is running out of money, so simply kicking the can down the road is not as viable an option.
Jasmin Melvin spoke with Jay Hansen, executive vice president for advocacy at the National Asphalt Pavement Association, about the potential influx of federal dollars for highway projects and the impact of political infighting on the asphalt industry.
Stick around after the interview for Jeff Mower with the Market Minute, a look at near-term oil market drivers.