High fuel prices have been “a substantial burden on American households,” U.S. Treasury Secretary Janet Yellen said. A fuel tax holiday that temporarily eliminates such taxes, “while not perfect, it is something that should be under consideration.”
Enterprise Products Partners completed early steps toward a proposed $5 billion ethane project east of Houston described by analysts as a “world-scale petchem facility.”
Brent crude futures and WTI crude futures in the U.S. rose immediately following the data release, along with gasoline and distillate futures.
The fall comes even though the U.S. government released more than 5 million barrels of reserves in the most recent week and as net crude imports rose by 83,000 bbl/d, the EIA said.
“Restricting U.S. energy exports would only create further instability in the marketplace, diminish American energy leadership and represent a grave disservice to our allies,” said API’s Frank Macchiarola.
Refining activity picked up in the most recent week, in response to tight product inventories and near-record exports that have forced diesel and gasoline prices to record levels in the U.S.
WTI was on track for its highest close since March 25 and its third weekly rise. Brent, however, remained set for its first weekly decline in three weeks.
Lyondell said the Houston refinery, once the anchor of its supply chain as a regional chemical company, no longer fit with its global petrochemical production.
“Strong exports have been driven by a pull to Europe and we should expect strength in the weeks ahead,” said Matt Smith, lead Americas analyst at Kpler.
The New York Attorney General launched an investigation to determine if the oil and gas industry has engaged in price gouging following testimonies from oil executives in Congress last week.