Oil prices fall as US may pause federal tax on gasoline
Asian markets started with a 1-2 percent decline in crude oil prices. The markets are reacting to the fact that the US may pause the 18.4 cents per gallon federal tax on gasoline and that would bring the profiteering down from the US companies.
Oil prices skidded in early trade on Wednesday amid a push by US President Joe Biden to bring down soaring fuel costs, including pressure on major US firms to help ease the pain for drivers during the country's peak summer demand.
Asian markets started with a 1-2 percent decline in crude oil prices. The markets are reacting to the fact that the US may pause the 18.4 cents per gallon federal tax on gasoline and that would bring the profiteering down from the US companies.
US West Texas Intermediate (WTI) crude futures fell USD 1.34, or 1.2 percent, to USD 108.18 a barrel at 00:31 GMT, while Brent crude futures dropped USD 1.33, or 1.2 percent, to USD 113.32 a barrel.
Apart from that are demand concerns from China, markets are looking at an increase in supplies of crude from the US. So whether it is crude oil or gasoline the inventory seems to be increasing in the case of the US and that is weighing on and of course, it is a macro scenario as well. There are recession fears and rate hikes and markets will watch out for the Jerome Powell (Chair of the Federal Reserve of the United States) statement by the later part of this week.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.
(with input from Reuters)
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