Gasoline price talks between oil refiners, Biden officials end in impasse

23/6/2022 9:28:00 PM

OIL & GAS: Gasoline price talks between oil refiners, Biden officials end in impasse - Reuters

OIL & GAS: Gasoline price talks between oil refiners, Biden officials end in impasse - Reuters

(June 23): Major US oil refiners and US Energy Secretary Jennifer Granholm emerged from an emergency meeting on Thursday on how to lower pump prices with no concrete solutions but a promise to continue talking, according to a source familiar with the discussions.The two sides entered the meeting with a promise to work together in good faith, but they are still far apart on solutions. The discussion comes at a tense moment for President Joe Biden and Big Oil.

A (June 23): Major US oil refiners and US Energy Secretary Jennifer Granholm emerged from an emergency meeting on Thursday on how to lower pump prices with no concrete solutions but a promise to continue talking, according to a source familiar with the discussions.for the latest news you need to know.A WASHINGTON (June 22): US President Joe Biden on Wednesday called on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices and provide temporary relief for American families this summer.for the latest news you need to know.

The two sides entered the meeting with a promise to work together in good faith, but they are still far apart on solutions.The discussion comes at a tense moment for President Joe Biden and Big Oil.Biden will travel from July 13 to 16 to Israel, the West Bank and to a regional meeting in Saudi Arabia, which former US president Donald Trump assiduously courted in hopes the kingdom home to Islam’s holiest sites would recognise the Jewish state.The president has criticized its CEOs for reaping huge profits from a fuel supply crunch exacerbated by Russia's invasion of Ukraine.Biden and his advisers have been discussing the issue for months amid increasing pressure to act as record-high gas prices weigh down the president's poll ratings and cast a dark cloud over Democrats' chances of retaining congressional power in November's elections.Granholm, striking a more conciliatory tone, expressed interest in a refiner proposal to waive summertime gasoline specifications that combat smog but make the fuel more expensive, a source said.“We are working, in the space that is not in the public domain, with a couple of other countries.She also downplayed a proposal to ban, or limit, fuel exports as a viable short-term option, the source said.On Monday in Toronto, Canadian Finance Minister Chrystia Freeland suggested to Yellen at a public forum that cutting the tariffs would be one way to ease inflation and end a long-running trade dispute between the North American trading partners.

The average price of gasoline was US$4.Asked to elaborate, Leaf said, “I really wouldn’t want to step on the president’s toes.4 cent diesel tax would require congressional approval, likely making Biden's pitch largely symbolic.955 per gallon on Wednesday, according to data from the American Automobile Association, 37 cents more than a month ago, and US$1.89 more than a year ago.Leaf said that the UAE-Israel relationship “is going like gangbusters” but that the Biden administration also wanted to encourage broader cooperation.Refiners cut capacity during the Covid-19 crisis shutdowns, but post-pandemic demand and a global fuel crisis after Western nations sanctioned Russian oil have driven prices up.Peter DeFazio, a Democrat and the chair of the House Committee on Transportation and Infrastructure, told reporters Wednesday a federal gas tax holiday would provide"miniscule relief" while blowing a budget hole in a Highway Trust Fund needed to fix crumbling bridges and build a modern infrastructure system.Exxon Mobil, Chevron and other refining giants reported a massive jump in profits at the end of 2021 and the first quarter of this year and have showered shareholders with buybacks and dividends.Leaf said that the United States wanted the event to be annual and to include the Palestinian Authority and Jordan — the only other Arab nation that recognises Israel but which has seen rising tensions over the status of Jerusalem.

The White House has targeted the refining industry's decision to idle about 1 million barrels per day of production capacity since 2020, arguing they should use their bumper profits to restart plants or units and help fill the supply gap that is driving up prices.Refiners have a"patriotic" duty to help with supply, the White House has said.Israel has also found common cause with Gulf Arab states in their tense relationships with Iran’s Shiah clerical state.Read full story "Pausing the federal gas tax will certainly provide near-term relief for US drivers, but it won’t solve the root of the issue — the imbalance in supply and demand for petroleum products," a spokesperson for the American Fuel and Petrochemical Manufacturers industry group said.Read full story The meeting included executives from Exxon Mobil, Chevron, Marathon and Phillips 66."I think this is more political fanfare than it is about policy and substance," John Hess, CEO of oil producer Hess Corp HES.N, said at a conference in New York on Thursday.energy production, it said.

Hess, which does not operate refineries, was not invited to the meeting.Refiners say investing in reopening plants carries significant financial risks.The Biden administration came into office vowing to shift the country away from fossil fuels that contribute to climate change, and has secured billions of dollars for the electric vehicle industry.A group of 25 drilling and pipeline industry groups including the American Petroleum Institute and the Independent Petroleum Association of America sent a letter to Biden on Thursday urging him to visit America's vast energy sources ahead of a July trip to Saudi Arabia, where the president is expected to encourage the oil-rich country to boost production."American-made energy solutions are beneath our feet, and we urge you to reconsider the immense potential of US oil and natural gas resources — that are the envy of the world — to benefit American families, the US economy and our national security," the group wrote.

The industry went into the meeting seeking to convince the Biden administration not to ban US fuel exports to combat record gas prices.They argue a ban will hurt allies who depend on the exports and force refiners to shut off capacity due to loss of markets.Granholm all but took the option off the table as a short-term solution, the source said.Biden, a Democrat, on Wednesday called on Congress to pass a three-month suspension of the federal gas tax, but that was met with opposition from lawmakers within his own party who say it may provide little relief while blowing a hole in a Highway Trust Fund budget that is funded by the gas tax.Subscribe to Mid-day email alert We deliver news to your inbox daily.

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