- To lower rising prices at the pump, the White House wants to ban US gas exports.
- Biden is currently at odds with the oil sector over high gas prices. This has been a key focus for his administration.
- Midterm elections are just five weeks away and oil leaders resist Biden’s call.
The White House asked the Energy Department to examine whether an export ban on gasoline would lower US gasoline prices.
This move shows that the Biden Administration is supporting the idea of banning oil drilling despite opposition from the industry. Bloomberg reportedTuesday, citing someone familiar with this matter.
According to the report, this measure would include US exports of gasoline and other refined petroleum products.
Bloomberg reports that there have been heated discussions between White House officials, oil industry leaders over the need to lower gas costs. President Joe Biden was elected last week. Energy giants are being over-hypedAnd Stations for gasFor raking in large profits and urged them to reduce gas prices immediately.
This is an important issue for Biden’s administration, with the November 8 US midterm election only five weeks away. Biden has been focused on limiting gas prices, which have led to an almost 40-year high in inflation in the US.
US gas prices reached a record high of $5 per gallon in June. This was due to rising oil prices and Russia’s war against Ukraine. In line with falling oil prices they dropped slowly after that, as the Biden administration began releasing record-breaking amounts of crude oil from the US Strategic Petroleum Reserve.
However, in September, the average US gas price was $2. The first time that the temperature has risen in 99 days was when it began to rise again. It was $3.831 at Wednesday’s close. According to AAA data.
By comparison, US benchmark WTI crude futuresThe last three months have seen a drop of around 12%, although they are now trending higher than the lows reached in late September. The international benchmark Brent crude futuresThe same timeframe saw a drop of over 8%, with recent increases.
Gas prices could fall if there is an export ban. This would protect domestic supply. However, oil industry trade associations have criticised this move and warned it could disrupt global energy markets. LetterJennifer Granholm, Energy Secretary
“Banning or limiting the export of refined products would likely decrease inventory levels, reduce domestic refining capacity, put upward pressure on consumer fuel prices and alienate US allies during a time of war,” the heads of the American Petroleum Institute and American Fuel & Petrochemical Manufacturers wrote.
The Biden administration is still in place. OPEC must be persuadedAt Wednesday’s meeting, the United States and its allies decided not to reduce their oil production targets. A reduced oil supply would likely lead to higher prices. This could in turn feed into higher US gas prices.
Viktor Katona, Kpler energy analyst, said that crude oil prices could reach $100 a barrel if OPEC+ reduces production as expected. Insider Monday.
