US President Joe Biden has called on the FTC to investigate whether the country’s biggest oil companies are engaged in potentially illegal conduct. And that in turn is resulting in higher prices for Americans.
Biden said there was mounting evidence of anti-consumer behaviour as gasoline prices have fallen by more than 5% over the past month. However, the average price at the pump has risen by 3% over the same period.
The API argues that gas prices are rising largely because demand is going up as the global economy revives. While at the same time, production hasn’t increased enough to keep pace.
Could this just be a case of a classic supply/demand imbalance situation?
Timestamps:
- XOM 02:00
- CVX 03:00