Oil declines as Biden seeks to cut US fuel prices from Investing.com

© Reuters.

By Jan Mengin

Investing.com – Oil fell in Asia on Wednesday morning as US President Joe Biden is ready to push for cuts in US fuel costs.

fell 3.03% to $ 111.18 at 00:40 ET (4:40 AM GMT) and fell 3.37% to $ 105.83.

call on Congress to temporarily suspend the federal gasoline tax to reduce rising fuel prices and ease pressure on consumers.

Even oil traders have acknowledged that higher oil prices, and therefore higher gasoline prices, would lead to a more aggressive attack by the (US) Fed team, which is raising interest rates and the Biden administration is becoming more creative on the political and fiscal front to tame the beast’s energy inflation, “Stephen Ines, managing partner at SPI Asset Management, told Reuters.

Seven oil companies will meet with Biden on Thursday, under pressure from the White House to lower fuel prices.

However, Chevron CEO Michael Wirth said on Tuesday that criticizing the oil industry was not the way to lower fuel prices.

“These actions are not helpful in meeting the challenges we face,” Wirth said in a letter to Biden.

Elsewhere, as European oil sanctions against Russia for its invasion of Ukraine have not taken effect, supplies are expected to be tightened.

“The market is still coming to terms with the growing disruptions in Russian oil. European sanctions have not yet entered into force, “ANZ Research analysts said in a note.

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