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Trump weighs another Jones Act suspension as gasoline stays above $4
The first emergency waiver after the Iran war barely moved gasoline prices, and shipping costs make up only a small share of what drivers pay at the pump, OilPrice reports.
OilPrice reports that U.S. President Donald Trump is weighing another suspension of the Jones Act as gasoline prices rise above $4 a gallon and could become a political liability ahead of the midterm elections.
The outlet says another suspension would again allow domestic oil and fuel shipments to use cheaper foreign-flagged vessels, extending an emergency waiver Trump imposed after the Iran war sent crude prices sharply higher in March.
OilPrice argues that the limited impact of the earlier waiver reflects how shipping costs account for only a small portion of retail gasoline prices, leaving maritime policy with little ability to pull costs down at the pump.
The report also points to Trump escalating pressure on major oil companies, including directing the Department of Justice to investigate Big Oil for possible price gouging, after Chevron and ExxonMobil posted large profit gains, with Chevron quarterly earnings rising to $12 billion and ExxonMobil profits more than doubling to $14.5 billion.
Latest closeWTI crude $78.07 ▲3.8%|Gasoline (RBOB) $2.703 ▼4.8%