Trump urges oil companies to lower retail prices amid rising gas costs

President Trump has publicly urged oil companies to reduce retail oil prices, a move that could potentially impact the broader oil market by exerting downward pressure on prices. This statement comes amid a backdrop of rising U.S. retail gasoline prices, which have increased significantly over the past year. The current average price is $3.855 per gallon, according to the latest data from the Energy Information Administration (EIA). Trump’s comments echo his previous accusations of price gouging against oil companies and suggestions for a Department of Justice investigation into gas price behaviors. Markets appear to view these developments as potentially reducing the likelihood of crude oil reaching a new all-time high by the end of September.

Key Takeaways

• Trump’s directive to lower oil prices appears consistent with a decrease in the likelihood of crude oil reaching a new all-time high.
• Current market pricing suggests the probability of crude oil reaching a new all-time high by September 30 is at 3.9% YES, a decrease from 4% the previous day.
• December 31 market pricing reflects an 11.5% YES likelihood, unchanged from the previous week, indicating a more extended timeline for potential price increases.

What to Watch

Observers will be keenly watching for any responses from major oil companies to Trump’s directive and any subsequent policy actions from the U.S. government that might affect oil prices. Key actors such as OPEC’s Secretary General Mohammad Sanusi Barkindo and Saudi Minister of Energy Abdulaziz bin Salman Al Saud may provide further insights into production decisions that could influence market trends. Developments, including geopolitical changes and shifts in global oil demand, will also be crucial in assessing the likelihood of crude oil prices reaching new highs. Markets will likely adjust as these factors unfold, offering further indications of future pricing trends.

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Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.