US President Donald Trump has ordered oil companies to immediately lower petrol prices after crude oil futures plunged following his decision to suspend another planned military strike on Iran.
Trump made the demand on Monday in a post on his Truth Social platform, directing oil producers to reduce prices for consumers. “Get your consumer (retail) oil prices DOWN, NOW!” Trump wrote.
According to Oilprice.com, crude prices dropped to $83.62 on Monday. They had earlier jumped to $100 at the height of the renewed crisis between Iran and the United States.
On Monday, Trump singled out Chevron Chief Executive Officer Mike Wirth after the executive appeared on television discussing the company’s business. Trump accused Wirth of failing to acknowledge the administration’s role in restoring Chevron’s position in Vene
“They threw Mike and Chevron out of Venezuela, but now they’re back, far bigger and stronger than ever before, expecting to make a fortune,” Trump wrote.
Oilprice.com reported that Chevron resumed operations in Venezuela after the Trump administration reopened access to the country’s oil sector and placed exports under US control.
American refiners have since become some of the largest buyers of Venezuelan crude, restoring a market that had largely disappeared under previous sanctions.
In the United States, the national average price of regular petrol reportedly stood at about $3.29 per gallon on Monday, according to AAA, down only modestly from last week’s highs despite crude prices falling by more than six per cent in a single session.
Retail petrol prices typically lag movements in oil markets because filling stations continue to sell inventories purchased at earlier wholesale prices.
Trump’s latest demand followed two earlier interventions on petrol prices. In June, he called on the Justice Department to investigate petrol prices after crude oil retreated from earlier highs.
Days later, he urged fuel retailers to lower pump prices towards $2.50 per gallon, warning companies that failed to respond would face “big problems”.
West Texas Intermediate crude fell by more than six per cent on Monday, while Brent crude lost more than five per cent after Trump announced a new round of negotiations with Iran and cancelled what he described as a planned “massive” military strike.
Retail petrol prices generally adjust more slowly because refiners, wholesalers and retailers continue selling fuel purchased when crude prices were higher.
Chevron, Exxon Mobil, Valero Energy and Marathon Petroleum all reported sharply higher second-quarter profits last week as the Iran conflict lifted crude prices and refining margins.
