President Donald Trump demanded that U.S. oil companies immediately lower gasoline prices on Monday after crude futures plunged following his decision to suspend another planned military strike on Iran. In a Truth Social post, Trump instructed producers to “get your consumer (retail!) Oil Prices DOWN, NOW!”
Trump singled out Chevron CEO Mike Wirth after the executive appeared on television discussing the company’s business. Trump said Wirth failed to acknowledge the administration’s role in restoring Chevron’s position in Venezuela. “They threw Mike and Chevron out of Venezuela, but now they’re back, far bigger and stronger than ever before, expecting to make a fortune,” Trump wrote.
Chevron resumed operations in Venezuela after the Trump administration reopened access to the country’s oil sector and placed exports under U.S. control. American refiners have since become some of the largest buyers of Venezuelan crude, restoring a market that had largely disappeared under previous sanctions.
Back in the U.S., amid a backlash over prices at the pump, the national average price of regular gasoline stood at about $4.09 per gallon on Monday, according to AAA, down only modestly from last week’s highs despite crude prices falling more than 6% in a single session. Retail fuel prices typically lag changes in oil markets because stations continue selling inventory purchased at earlier wholesale prices.
Monday’s demand follows two earlier interventions by Trump. In June, he called on the Justice Department to investigate gasoline prices after crude retreated from earlier highs. Days later he urged fuel retailers to lower pump prices toward $2.50 per gallon, warning companies that failed to respond would face “big problems.”
West Texas Intermediate crude fell more than 6% on Monday, and Brent crude lost more than 5% after Trump announced a new round of negotiations with Iran and canceled what he described as a planned “massive” military strike. Retail gasoline prices typically adjust more slowly because refiners, wholesalers and retailers continue selling fuel purchased at earlier crude prices.
Chevron, Exxon Mobil, Valero Energy and Marathon Petroleum all reported sharply higher second-quarter profits last week as the Iran conflict lifted crude prices and refining margins. Trump’s latest demand places those earnings alongside falling oil prices as his administration pushes the industry to pass lower crude costs through to consumers.
By Charles Kennedy for Oilprice.com
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