EUR/USD 1.12506
0.223%
Gold 3330.15
0.734%
Oil 60.849
1.545%
USD/JPY 145.197
-0.499%
GBP/USD 1.32811
0.272%
GBP/JPY 192.843
-0.197%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On May 9, European Commission President Ursula von der Leyen said that once a specific trade plan is on the table, she could envision visiting Washington to meet with Trump to discuss trade negotiations. "If I go to the White House, I hope there is a package that we can discuss," von der Leyen said. "It has to be specific, and I hope there is a solution that we can both agree on. Thats what were working on now." Last month, von der Leyen met briefly with Trump at Pope Francis funeral, but a formal meeting has not yet taken place. On Thursday, the European Commission announced that if trade negotiations with the United States fail to produce satisfactory results, the EU will impose additional tariffs on 95 billion euros of US exports. Von der Leyen said on Friday that the EU prefers to resolve the issue through negotiations to avoid tariff escalation, but is developing countermeasures that can be implemented if a "satisfactory result" cannot be reached.On May 9, ECB board member Simkus said that since the eurozone economy has not yet felt the full impact of US tariffs, inflation is expected to continue to slow, but the ECB must further lower interest rates. He said that although economic activity performed well at the beginning, recent geopolitical trends, including US President Trumps trade threats, are bad news. At the same time, he saw "clear anti-inflationary forces" at work. He said, "For me, the June decision was very clear that another rate cut was needed." He said, "It is possible to cut interest rates again after June," although the timing is unclear. The ECB has cut interest rates seven times since June last year, and officials have said they are ready to take more measures as US tariffs threaten economic growth.Federal Reserve Board Governor Kugler: It is not appropriate to use a single indicator to guide the maximum employment target.Federal Reserve Board Governor Barr: Forward-looking measures are worrying.Federal Reserve Board Governor Barr: The first quarter GDP data was somewhat abnormal.

Big Oil Tells Congress: Markets, Not businesses, Dictate Gasoline Pricing

Charlie Brooks

Apr 06, 2022 09:21

G1.png


The meeting, scheduled for 10:30 ET (14:30 GMT), is being held by members of the United States House Energy and Commerce Subcommittee on Oversight and Investigations to grill firms about why gasoline prices continue to rise despite falling crude oil prices, the feedstock for fuels.


US gasoline prices, pushed higher by Russia's invasion of Ukraine and Western sanctions on Moscow's energy exports, reached a record high of $4.33 a gallon on March 11 before falling to $4.17 a gallon on Wednesday, according to the AAA motorist association, a decrease of almost 4%.


Meanwhile, international oil prices have fallen even more precipitously, from a high of more than $139 per barrel in early March to about $107 per barrel on Tuesday, a decline of 23%.


"We will not sit back and allow the fossil fuel industry to exploit the American people and gouge them at the pump," Democratic subcommittee chair Diana DeGette said of the hearing, which will feature testimony from executives from Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP) America, Shell (LON:RDSa) America, Devon Energy Corp (NYSE:DVN), and Pioneer.


"We want to understand what is generating these record-high costs and what must be done promptly to bring them down," she added. Numerous Democrats have claimed that oil firms have earned unprecedented profits at the expense of consumers.


The oil companies will argue that labor and supply shortages are impeding a rapid return of oil production to pre-pandemic levels and that prices are determined on the international market.


Mike Wirth, CEO of Chevron, will assert that gasoline prices are determined by market forces over which firms have little influence.


"Adjustments in crude oil prices do not necessarily translate into quick changes at the pump," Wirth will explain. "And, although crude oil prices may fall more rapidly, it typically takes longer for competition among retail stations to drive down pump prices."


President Joe Biden, a Democrat, pushed oil corporations last week to increase production and prioritize serving American people above investors, as he announced a record-breaking release of oil from strategic reserves.


Chevron intends to increase capital expenditures by 50% this year, with about half going toward expanding oil and gas production and the other half toward renewable fuels and lower-carbon energy, Wirth would remark, referring to previously declared intentions.


Exxon, the largest oil firm in the United States, announced Monday that its first-quarter earnings might exceed a seven-year high. The preview provided insight into what lies ahead for other companies' oil revenues in the aftermath of Russia's incursion, which drove energy prices higher.


"No one firm determines the price of oil or gasoline," Exxon Chairman and CEO Darren Woods will testify. "The market determines the price based on the quantity of available goods and the demand for those goods."


Gretchen Watkins, president of Shell USA, will state that her business does not own or control the 13,000 petrol stations that use the Shell name. "Each of these independently owned companies is accountable for fixing the retail price of gasoline in their own communities."


Scott Sheffield, chief executive of Pioneer, the Permian Basin's largest producer, will explain that oil firms are unable to swiftly turn on the taps due to labor and supply chain bottlenecks, as well as the retirement of many rigs and hydraulic fracturing fleets in 2020 when prices were low.

Suggestion