‘Oil-gas business is making billions’: Trump downplays US public’s price spike complaints
Although oil prices dropped on Monday from the near six-month highs they hit last week, they were still well above $100 per barrel, staying significantly higher than where they stood before the US and Israel launched a military campaign against Iran in late February. US President Donald Trump, however, once again countered the American public’s complaints about spikes in oil and gas rates.
Trump defends high oil and gas prices
Trump has long maintained that high oil and gas prices are but a small price to pay if it helps ensure that Iran never possesses a nuclear weapon. Speaking at a rally in Georgia, he again reiterated recently that these rates are only “temporarily high.” Simultaneously, he also emphasised that the US oil-gas business was actually flourishing amid the current circumstances and “is making hundreds of billions of dollars.”
“I don’t give a damn,” he asserted. “I’m going to say it — we’re making a fortune.” He further noted that the currently hindered maritime traffic in the Strait of Hormuz region had compelled oil buyers to redirect their focus onto US companies with operations in Texas, Oklahoma, and Louisiana.
Back in August, when the global benchmark, Brent crude futures, had dropped to $83.77 a barrel after surpassing the $100 mark, Trump chose to openly blame the consistently surging rates on two of the biggest US oil companies. He accused Chevron and ExxonMobil of “making too much money” from rising oil prices.
“They’re making too much money. Okay, based on a shortage, they’re making too much money,” Donald Trump told reporters at the time in the Oval Office. “I don’t like it, and I should be the last one to say because I’m a big free enterprise guy.”
He continued, “Nobody bigger, and you know, you’re going to see oil when we’re finished with Iran. You’re going to see the prices drop through the floor. But they made too much money, too much money. Chevron, too much money. Exxon Mobil, too much, too much money.”
“When you look at one company where they made 12 times what they made the year before, they ought to give some of that back to the public, and they better cut the retail price, the consumer price. Too much money. You surprised I’m saying it. I’ll say it loud and clear. I’m not happy about it.”
US oil company profits vs American public’s disapproval
According to a Q2 report from Oil & Gas Journal, “surging crude prices tied to ongoing Strait of Hormuz disruptions” have brought in unexpected good fortune for North American oil companies. The trade publication reported that year over year, a sample of 38 American producers and refiners grew their collective revenues by about $140 billion.
However, these massive windfalls experienced by oil giants stand in stark contrast to what the general American public has been through. A growing share of US adults has blamed surging oil and gas prices on Trump. An increasing list of polls further shows that a soaring portion of citizens don’t approve of Trump’s handling of the economy, which has, in turn, put added pressure on the Republican Party ahead of the crucial and upcoming midterm elections in November.
Released earlier this month, a Reuters/Ipsos poll found a 78% bipartisan majority of Republicans and Democrats blames Trump’s policies for surging prices that are outpacing their earnings. It also noted that about one in four Republicans disapproved of the POTUS’ handling of the economy. 63% of independents and 92% of Democrats shared that view.
White House hails Trump’s energy deals
Given these concerns, a Trump White House release spoke highly of major deals secured by the Republican leader to “unleash American energy and cut gas prices at the pump” around the same time as his latest remarks were delivered at the rally stop.
“Gas and diesel prices will soon drop rapidly thanks to President Donald J. Trump’s bold actions to unleash American Energy,” the White House stated. “…Today, under President Trump’s leadership, America is producing record amounts of oil and natural gas while expanding domestic refining capacity and strengthening America’s energy security.”
The official release went on to list several developments, including Trump’s use of the Defence Product Act, the “largest oil deal in world history with Venezuela” announcement made after the Nicolas Maduro ouster, and “more oil” passage through the Hormuz Strait despite soaring attacks in the region.
Where do oil and gas prices stand now?
As gasoline continues to be sold in the US above $4 a gallon, one can’t help but recall that it was priced at an average of $2.98 a gallon days before the US-Israel war on Iran began on February 28.
Similarly, diesel prices have also been significantly hit, with AAA reporting that the current average sits at $6.35 a day, compared to $3.75 a day before the conflict started.
Meanwhile, Brent prices were $115.314 a barrel at the time of writing. At one point before the weekend, the price for oil’s international benchmark passed $117 a barrel, the highest since April.
The jump was triggered by Iran’s threats to attack oil facilities, undersea cables, data centres and AI facilities in the Gulf region if a new US-Israel military campaign was launched against Tehran.