Oil slumps over 6% as Biden set to cut fuel costs for drivers - News Summed Up

Oil slumps over 6% as Biden set to cut fuel costs for drivers


(June 22): Oil prices tumbled on Wednesday on news of a plan by US President Joe Biden to cut fuel costs for drivers and amid concerns over a potential economic recession after recent Central Bank rate hikes, which also weighed on equities. Oil prices often move in tandem with stocks, which also took a hit as investors assessed how interest rate hikes designed to cool soaring inflation might stall an economic recovery as pandemic restrictions have eased. Commerzbank's commodities analyst Carsten Fritsch said, if successful, the tax cut would likely "support prices by stimulating demand for gasoline". Chevron CEO Michael Wirth said criticising the oil industry was not the way to bring down fuel prices and that the government had to change its approach. Meanwhile, US oil refining capacity fell in 2021 for the second year in a row, government data showed.


Source: The Edge Markets June 23, 2022 04:27 UTC



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