US may stop taxing petrol for 3 months to stop prices from rising

US President Joe Biden will ask Congress to suspend the federal gas tax for three months as skyrocketing prices cause widespread anger among Americans just months before crucial mid-term elections, as per an AFP report.

Oil prices tumbled on Wednesday as the news of Biden's push to cut taxes amid aggravated relations between the White House and the US oil industry was factored in.

Brent crude futures were down USD 4.65, or 4.1 percent, at $110 a barrel while US West Texas Intermediate (WTI) futures fell $5.08, or 4.6 percent, to $104.44 on Wednesday.

Earlier in the session, both contracts had shed over $6 each to hit their lowest levels since May 19 and 12, respectively.

The prices are down by 18 percent from the 2022 high of $139 per barrel.

During an interview with CNBC-TV18, Jonathan Barratt, Chief Investment Officer at Probis Securities, said he expected Brent to test $100 per barrel in the short term.

“Oil is under a lot of pressure and technically it has broken through a level which could see further declines from here. We are still in what we would perceive as a market that is tight on supply but I think we may see oil prices go lower from here. So, if you look at the Brent contracts it can come back to $100-103 per barrel in the short term but in the medium-term prices are likely to move higher,” Barratt said.