6% dip in crude as Biden intensifies oil pressure

LAST UPDATE 16:50

Oil prices are moving at a loss of more than 6%, as US President Joe Biden pushes to reduce fuel costs by targeting major US oil companies.

In particular, Brent’s August delivery contract is traded on $ 107.7 the barrel with a drop 6% or $ 6.7.

Similarly, the US WTI in August is also falling against 6.3% or $ 7 with its price set at $ 102.6 the barrel.

As the United States struggles to control inflation and curb rising fuel prices, President Biden is expected to ask Congress today to temporarily lift a federal tax on gasoline of 18.4 cents a gallon.

However, the proposal is not certain to be approved by the body as from time to time MPs from both parties have expressed their opposition.

However, in combination with the pressure exerted on the oil companies by Biden, the sellers have taken the reins in the transactions with the oil prices now falling to a low from the middle of May.

PVM’s Stephen Brennock points out that “the latest move in a series of attempts to lower the price of the pump seems to be having the desired effect”, but added that “in any case there is no guarantee that the reflexive reaction shown by the markets will be maintained with time”.

At the same time, Biden is waiting for the representatives of seven oil companies tomorrow, Thursday, which he accuses of not taking action to reduce the prices of gasoline as they are making record profits in the current phase.

For his part, Chevron CEO Michael Wirth argued that criticism of the oil industry was not a way to lower fuel costs.

“These actions are not conducive to addressing the challenges we face,” Wirth said in a letter to Biden, with the US president responding that the oil industry appeared to be “sensitive”.

On the other hand, China received a new shipment of about 2 million barrels of Iranian oil last week, which is probably destined for its security reserves.

This is the fourth such shipment since last December, which is expected to be confirmed by Chinese customs archives, which will release details of the imports in June next month.