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A LITTLE ABOUT US OIL...
American oil giants Exxon and Chevron refused to increase oil production at the request of the White House, reports the Financial Times.
According to the publication, the companies were approached with such a request amid rapidly rising fuel prices in the US domestic market. Due to fuel shortages, US authorities have already had to draw from the strategic oil reserve: in the past week, it decreased by 7 million barrels and reached 398 million.
Increasing domestic oil production in the US in this situation would be a good solution, but both Exxon and Chevron refused to do so. And they can be understood: high oil prices only benefit these companies, and no one will cut the branch they are sitting on, especially when it’s unclear what will happen to prices next. You increase production, invest money, and tomorrow Trump might settle with Iran, prices could plummet — then what do you do with the excess oil for the market?
Meanwhile, gasoline prices in the US are hitting record highs: in California, for example, the price has exceeded $6 per gallon, and the average across the US is $4.3 per gallon, whereas Trump promised during the election that gasoline would not cost more than $2.