Oil prices often move with stocks, which also took a hit as investors took stock of how rate hikes launched to cool inflation could stall the economic recovery now that pandemic restrictions have been eased. Biden is scheduled to ask Congress on Wednesday to consider a three-month suspension of the 18.4-cent-per-gallon federal gas tax and urge states to do the same for their fuel taxes, a senior administration official said. .
Carsten Fritsch, an analyst at Commerzbank, said that if successful, the tax cut would likely “support prices by stimulating demand for gasoline.” The White House has invited the chief executives of seven oil companies to a meeting this week to discuss ways to boost production capacity and lower fuel prices as they post record profits.
Chevron Chief Executive Michael Wirth said criticizing the oil industry is not the way to lower fuel prices and that the government needs to change its approach.
Biden’s anger
President Joe Biden urged companies to increase refining capacity immediately and held them responsible for the recent increases. He did it through a letter addressed to the main companies in the sector, in which he also warned them that he will take all “emergency tools and powers” within their power to force that increase. In a counter letter, the main chambers of the sector explained why prices are rising and slipped a criticism of the government’s policy on hydrocarbons.
In his letter, Biden pointed out that gasoline prices are disconnected from the price of a barrel and blamed the refiners for the increases. “In times of war, it is not acceptable for refinery profit margins are well above normal and transferred directly to American families,” he exclaimed.
Source: Ambito
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