The price of oil slipped more than $ 6 per barrel on Wednesday in the middle of the urge by US President Joe Biden to bring down the soaring fuel costs, including pressure on the country’s main energy companies to help relieve pain for drivers during summer peak consumption.
In 0718 GMT, As West Texas Intermediate (WTI) Futures is not low but still dropped $ 5.98, or 5.46%, at $ 103.54 per barrel. Likewise, Brent Crude Futures dropped $ 5.67, or 4.95%, to $ 108.98 per barrel.
As the United States, the largest oil consumer in the world, struggling to overcome the price of gasoline and inflation that surge, President Joe Biden is expected to call on Wednesday because temporarily suspending 18.4 cents of federal tax gallons over gasoline, a source given a briefing about the plan told the Reuters.
I think the headlines of Biden without stopping, with administratives that seem to be in panic inflation mode, have played a role in the latest sales because investors hate uncertainty, even if it is not rational in the context of known supply problems,” said Stephen Innes, partner of the management at SPI Asset Management, in a note.
Seven oil companies will meet with Biden on Thursday, under pressure from the White House to reduce the price of fuel when they make a profit record.
Chevron (Nyse: CVX) Chief Executive Michael With, said on Tuesday criticizing the oil industry was not a way to reduce fuel prices.
“These actions are not useful to meet the challenges we face,” Wirth said in a letter addressed to Biden, which triggered a response from Biden who said that this industry was too sensitive.
Although there are concerns about inflation, demand is still on the road to recovery to pre-cambuk and supply is expected to miss the growth of demand, keeping the market strong, as marked by the vitol trading giant and exxon cars Corp (Nyse: XOM) this week.
“From here, the more likely results are the widening of the Brent premium above WTI,” said Jeffrey Halley, analyst at Energy Consultancy Oanda in a note, adding that Brent is a benchmark that is traded internationally and in the real world, inventory remains tight.
U.S. oil purification capacity Down in 2021 for the second year in a row, the latest government data showed on Tuesday, because the closure of the factory made a commotion on their ability to produce gasoline and diesel.
Official data shows a decrease in capacity of 125,790 barrels per day (BPD) last year above the decline of 800,000 BPD in 2020.
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