INSUBCONTINENT EXCLUSIVE:
Oil prices tumbled on Wednesday on news of a plan by U.S
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.Brent crude futures were down $4.62, or 4%, at $110.03 a barrel while U.S
West Texas Intermediate (WTI) futures fell $4.96, or 4.5%, to $104.56 by 1040 GMT.Earlier in the session, both contracts had shed over $6
each to hit their lowest since May 19 and 12, respectively.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.Biden on Wednesday is expected to ask Congress to consider a three-month suspension of the 18.4 cents per gallon federal tax on
gasoline and call on states to suspend their fuel taxes, a senior administration official said.Lawmakers of both major parties have
as a bullish demand signal, a tax cut could also induce expectations of further measures by the Biden administration to cool rallying energy
prices.Biden is expected to make the announcement at 1800 GMT.The White House asked the CEOs of seven oil companies to a meeting this week
to discuss ways to increase production capacity and reduce fuel prices of around $5 a gallon as they make record profits.Chevron (CVX.N) 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
giant Vitol and Exxon Mobil Corp (XOM.N) this week.The $2.4 trillion set to be invested in energy this year includes record spending on
renewables but falls short of plugging a supply gap and tackling climate change, the International Energy Agency said on
oil refining capacity fell in 2021 for the second year in a row, government data showed.Source: Reuters-Agencies
This article first appeared/also appeared in https://adaderana.lk
