Oil prices fall sharply ahead of Biden’s plan to cut consumer fuel costs

Fears that recession in the economies of the United States and other countries will decrease demand also worry the sector

Recent rise in oil prices has governments looking for solutions to the problem

the prices of Petroleum suffered heavy casualties on the morning of this Wednesday, 22, after the disclosure that the president of the United States, Joe Biden, should announce a plan to reduce the cost of fuel to consumers. By 11:50 am ET, Brent crude futures were down about $5, or 4.5%, to $109.49 a barrel. US Crude Oil (WTI) was down 4.77% to $104.42. Biden said by next weekend he must make a decision on whether to suspend the federal tax on US$0.184 per gallon (3.47 liters) of gasoline, which would require approval by the US Congress. , and should ask States to also reduce fuel taxes. Another factor is fears that interest rate hikes made by central banks as a way to fight inflation will lead to a global recession, which would reduce demand for the commodity. Oil has surged in recent months, particularly after the outbreak of war in Ukraine and the application of economic sanctions against Russia, one of the world’s biggest producers.

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