Cecilia Rouse, chair of Biden's Council of Economic Advisers, stated Wednesday in an interview with Bloomberg Television that "right now, in particular, oil prices are particularly unpredictable." I've heard that part of the reason is that there is more supply on the market because China and India are actually buying more Russian oil than we might think.
Digital
Desk: According to one of President Joe Biden's economic advisers, China and
India may be purchasing more Russian oil than the US previously thought,
relieving a supply shortage on the world market and possibly causing the
current price drop.
West
Texas Intermediate crude's price has dropped from nearly $122 earlier this
month to just over $105 today, encouraging optimism that gas pump pressure may
be easing.
India
has quickly overtaken China as the main consumer of barrels loaded at ports on
Russia's western coastlines, leaving China as the lone market for oil exported
from ports on its Pacific coast. With a regular stream of tankers leaving from
the Baltic and Arctic Seas and travelling through Europe and the Suez Canal,
Asian consumers, led by China and India, are now consuming about half of all
the petroleum supplied from the nation's ports.
In the
week leading up to June 10, about 860,000 barrels per day of crude oil were
loaded into tankers at Russia's western export terminals before they left for
locations in Asia. And once destinations are known for the over 210,000 barrels
per day that are on vessels but have not yet revealed a final discharge point,
the number will almost probably be revised higher.
Cecilia
Rouse, chair of Biden's Council of Economic Advisers, stated Wednesday in an
interview with Bloomberg Television that "right now, in particular, oil
prices are particularly unpredictable." I've heard that part of the reason
is that there is more supply on the market because China and India are actually
buying more Russian oil than we might think.
Rouse
spoke after Biden requested that Congress temporarily suspend the federal
gasoline tax, which is 18 cents per gallon, in order to provide some assistance
to consumers. Rouse expressed her hope that consumers will benefit from the
worldwide price decline but noted that there were still long-term issues.
"We
appreciate the price reductions and hope they are passed on to the customer at
the pump. However, we also understand that Russia — and that this conflict will
not end overnight. In order to "get us through these turbulent waters as
we get inflation down, get this conflict finished, and get onto a steadier, more
sustainable economic foundation," Biden wants Congress to postpone the
tax.
There
is no indication that Congress will heed Biden's request. Additionally, the
president urged states to halt their own gas taxes, something that some had
already done. Additionally, Biden urged energy corporations to pass on drops in
crude prices to consumers of gasoline. Jennifer Granholm, the secretary of
energy, is scheduled to meet with the heads of the energy sector on Thursday.
At a
White House briefing on Wednesday, Granholm stated, "We need greater
innovation and cooperation to get us through this unusual scenario."
"Now is the time to reinvest those profits so they can better serve the
needs of our residents," the speaker said.
