Crude futures fell sharply on Wednesday, with US futures hitting a six-week low.
“Oil is lower due to demand concerns, the prospect of a US gasoline tax suspension and renewed fears of a recession,” said Phillip Streible, Blue Line Futures’ chief market strategist.
Brent crude for August delivery fell 2.5 percent to $ 111.74 a barrel on ICE Futures Europe, the lowest level since May 18.
West Texas Intermediate crude for August delivery lost 3% to $ 106.19 a barrel on the New York Mercantile Exchange, the lowest close since May 12, according to FactSet.
July delivery was up 0.7% at $ 6,858 a million British thermal units.
MPs from both major parties have voiced resistance to the federal tax suspension.
“The latest in a long series of efforts to mitigate rising pump prices is having the desired effect. However, whether this spasmodic response will stand the test of time is by no means guaranteed,” said PVM’s Stephen Brennock. an expected increase in demand in the summer.
The White House invited the CEOs of seven oil companies to a meeting this week to discuss ways to increase production capacity and reduce fuel prices by about $ 5 a gallon as they make record profits.
Chevron CEO Michael Wirth said criticism of the oil industry was not the way to reduce fuel prices and that the government needed to change its approach. Biden responded by commenting on the easily felt feelings of the industry.
Global supply is still expected to delay demand growth, as noted by trading giant Vitol and Exxon Mobil Corp. this week.