Trump, Alarmed by Fuel Prices, Calls Refinery Executives to The White House

[Financial News]  

On August 1 local time, U.S. President Donald Trump summoned oil refining company executives to The White House and pressed them to lower fuel prices. The move came as gasoline prices at U.S. gas stations stayed above $4 per gallon for the entire month of August for the first time on record.
U.S. fuel prices have been rising in step with crude oil prices, which jumped more than 40% after Trump launched the Iran war on February 28. With fuel prices continuing to soar just two months before the midterm elections, Trump has moved to rein in refiners.

According to CNBC and other foreign media outlets, White House spokesperson Taylor Rogers said in a statement on July 31 that Trump would meet with executives from U.S. oil refining companies and fuel distributors on August 1. The goal is to expand domestic refining capacity and bring down gasoline prices.
The meeting will also be attended by Doug Burgum, Secretary of the Interior, U.S. Secretary of Energy Chris Wright, and Jared Eisen, executive director of the National Energy Dominance Council.
Trump's effort to pressure refiners stems from concerns over the cost of living, especially the surge in gasoline prices, which is becoming a political liability ahead of the November 3 midterm elections. In an Ipsos poll released in early August, nearly half of Americans said the cost of living was the biggest issue in this election, and 70% said the president was not handling the problem well.
The White House said the administration is focusing on short-term efforts to expand U.S. refining capacity, including importing more Venezuelan oil.

According to The Associated Press (AP) and the American Automobile Association (AAA), the average U.S. gasoline price reached $4.08 per gallon that day, marking the first time it stayed above $4 for an entire month.
This year's gasoline prices have already surpassed the previous all-time high set in August 2022 during the COVID-19 pandemic.
AAA noted that gasoline demand usually declines in August, but this year the national average price is rising because of higher crude oil prices.
In particular, international oil prices surged that day after the United States and Iran resumed clashes the previous day, suggesting stronger upward pressure on gas station prices.
It remains unclear how much prices will fall even if Trump applies pressure.

The international market environment is also a problem.
Even before the Iran war, global refining shortages had already been a concern. Refining facilities in war-torn Ukraine and Russia have become targets of attacks. Russia, once a major exporter of diesel and gasoline, temporarily suspended exports after its refining facilities were damaged in Ukrainian drone strikes.
According to a Valero Energy estimate released early last month, the Iran and Ukraine wars have wiped out about 5 million barrels per day of global refining capacity.
As a result, gas station prices have been slow to fall even when crude oil prices decline.
ExxonMobil CEO Darren Woods told CNBC in an interview in late July that the lack of refining capacity had created a "disconnect" between crude oil prices and gasoline prices at the pump.
[email protected] Song Kyung-jae Reporter