Investor Alert

Oct. 6, 2022, 1:57 p.m. EDT

Biden official says ban on gasoline exports still on the table, as White House responds to OPEC+ supply cut

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Crude Oil Continuous Contract (CL00)
  • X
    RBOB Gasoline Continuous Contract (RB00)
  • X
    Energy Select Sector SPDR ETF (XLE)

or Cancel Already have a watchlist? Log In

By Victor ReklaitisRobert Schroeder

Top White House economic adviser Brian Deese said Thursday that a U.S. ban on exports of gasoline and other refined petroleum products still was under consideration, as Biden administration officials continued to respond to the prior day’s news about a crude oil production cut by the Organization of the Petroleum Exporting Countries and its allies.

“The president has directed that we have all options on the table, and that will continue to be the case, and so that’s how we’re approaching this question,” said Deese, director of Biden’s National Economic Council, in response to a question from a reporter about the potential for an exports ban.

The possible ban has been on the table for months, with U.S. Energy Secretary Jennifer Granholm saying in May that Biden hadn’t ruled it out.

High prices for oil /zigman2/quotes/209723049/delayed CL00 +0.35% , gasoline /zigman2/quotes/210286597/delayed RB00 +1.46% and other essentials remain a crucial issue for Biden and his fellow Democrats ahead of next month’s midterm election s, when Republicans hope to take control of the House and Senate. Sen. John Cornyn of Texas was among the Republicans highlighting how the OPEC+ news isn’t good for the other side.

“As diplomatic humiliations go, it’s hard to top the decision by Saudi Arabia and its OPEC+ allies to cut oil production by two million barrels a day despite U.S. entreaties,” Cornyn said in a twee t on Thursday.

Related: Midterm elections: Senate control may not be determined until December. Here’s why.

Also:   If this seat flips red, Republicans will have ‘probably won a relatively comfortable House majority’

Plus:   ‘Republican control of the House is not a foregone conclusion,’ says political analyst

The White House on Wednesday said in a statement that Biden “is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine,” referring to Russian President Vladimir Putin.

The statement also said the Biden administration was continuing to make its previously announced releases from the U.S. Strategic Petroleum Reserve, and the president “would continue to direct SPR releases as appropriate.”

Biden also has directed Granholm to “explore any additional responsible actions to continue increasing domestic production in the immediate term,” while “calling on U.S. energy companies to keep bringing pump prices down by closing the historically large gap between wholesale and retail gas prices,”  and working with Congress on “additional tools and authorities to reduce OPEC’s control over energy prices,” the White House statement said.

Amos Hochstein, Biden’s top energy /zigman2/quotes/206420077/composite XLE -0.37% adviser, echoed that view during an interview on Bloomberg TV on Thursday, saying: “We’re going to work with Congress to see what kind of tools we need.”

He also defended Biden’s July trip to Saudi Arabia, saying there were multiple reasons for the president’s visit. Biden told reporters on Thursday morning that the Saudi trip “was not essentially for oil. The trip was about the Middle East and about Israel and rationalization of positions.”

Now read: White House defends Biden’s summer trip to Saudi Arabia after OPEC+ supply cut

And see: Oil prices end at highest in 3 weeks as OPEC+ agrees to a large output cut

US : U.S.: Nymex
$ 76.55
+0.27 +0.35%
Volume: 250,830
Nov. 25, 2022 1:44p
US : U.S.: Nymex
$ 2.31
+0.03 +1.46%
Volume: 40,919
Nov. 25, 2022 1:44p
US : U.S.: NYSE Arca
$ 91.87
-0.34 -0.37%
Volume: 7.59M
Nov. 25, 2022 1:10p

This Story has 0 Comments
Be the first to comment
More News In
Economy & Politics

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.