According to one of President Joe Biden’s economic advisers, China and India may be purchasing more Russian oil than the US previously thought, lessening a supply shortage on the world market and possibly causing the current price drop. With the price of West Texas Intermediate crude falling from about $122 earlier this month to just over $105 today, there is hope that the pressure at the gas pump may be easing.
India has quickly surpassed China as the sole market for barrels of oil shipped from ports along Russia’s western littoral, leaving China as the only market. With tankers leaving from the Baltic and Arctic Seas and going through Europe and the Suez Canal on a regular basis, Asian consumers, led by China and India, now use about half of all the oil that comes from the country’s ports.
About 860,000 barrels of crude oil per day were loaded into tankers at Russia’s western export terminals in the week before June 10 before they departed for destinations in Asia. And the number will very definitely be increased once the destinations for the over 210,000 barrels per day that are on boats that have not yet revealed their final discharge place are known.
Cecilia Rouse, chair of Biden’s Council of Economic Advisers, stated in a recent interview that right now, in particular, oil prices are extremely unpredictable. She has heard that part of the reason is that there is more supply on the market because China and India are actually buying more Russian oil than we might think. Rouse spoke after Biden requested that Congress temporarily suspend the federal gasoline tax, which is 18 cents per gallon, in order to provide some assistance to consumers. Rouse expressed her hope that consumers would benefit from the worldwide price decline, but noted that there were still long-term issues.
They appreciate the price reductions and hope they are passed on to the customers at the pump. However, they also understand Russia and that this conflict will not end overnight. In order to get them through these turbulent waters as they get inflation down, get this conflict finished, and get onto a steadier, more sustainable economic foundation.
Congress doesn’t seem to be going to pay attention to Biden’s appeal. Additionally, the president urged states to halt their own gas taxes, something that some had already done. Jennifer Granholm, the secretary of energy, is scheduled to meet with the heads of the energy sector soon.
At a White House briefing on June 22nd, Granholm stated that they need greater innovation and cooperation to get through this unusual scenario, and now is the time to redeploy those profits so they can better serve the needs of their residents, the speaker said.
