How President Biden’s symbolic gas tax cut will affect oil markets

Top of the morning readers, Phil Rosen here. Yesterday I sat down with the CEO of Doodle – an NFT project from Cute Sketch that has raised over $500 million in sales. He explained how he aims to turn the NFT collection into an entertainment brand, and that Doodle could still hold value during a [...]

How President Biden’s symbolic gas tax cut will affect oil markets

Top of the morning readers, Phil Rosen here. Yesterday I sat down with the CEO of Doodle – an NFT project from Cute Sketch that has raised over $500 million in sales.

He explained how he aims to turn the NFT collection into an entertainment brand, and that Doodle could still hold value during a downturn. Get full details in my latest dispatch from the conference.

That said, President Biden is sweating gas prices much more than the current crypto bear market.

Let’s take a look at what he’s planning — and how it affects the oil markets.

Biden announced the imposition of sanctions on US imports of Russian oil and gas at the White House on March 8, 2022.

Biden announced the imposition of sanctions on US imports of Russian oil and gas at the White House on March 8, 2022. Jim Watson / AFP via Getty Images

1. Higher prices mean Biden wants leave One gas tax holiday, at least.

The White House called on Congress yesterday to suspend the federal gasoline tax, though the move is largely symbolic and weighs on their re-election ambitions as prices at the pump and inflation squeeze Americans.

While it’s possible that the relatively cheap gas may actually fuel higher demand — thus driving up prices even higher — oil actually fell by as much as 7% for most of yesterday.

This is because the market is also digesting a wave of bearish forecasts that will almost certainly lead to lower oil demand.

As the White House points to war in Ukraine The dangers of a recession continue to ring due to high gas prices and economic turmoil.

Deutsche Bank CEO put the probability of a global recession at 50%, and JP Morgan’s Jamie Dimon warned of an impending economic “storm”.

Wells Fargo chief Charlie Scharf said there was “no question” of a recession, and Citi also says the possibilities are high.

“We have about a 40% slowdown next year. We won’t see it until next year, because the tightening we are seeing around the Fed takes about 12 to 18 months to really show the economic situation,” A City exec said.

Insider Finance Correspondent Aaron Weinman, who wrote 10 Things to Do on Wall Street, talked about Biden’s gas tax holiday on CBS News last night. Watch video here.

Putin, Bortnikov

Russian President Vladimir Putin (R) and Federal Security Service FSB chief Alexander Bortnikov Mikhail Svetlov / Getty Images

2. US stocks climbed after closing lower in Wednesday’s session, while oil extended its losses. Fed Chair Powell told Congress yesterday that the central bank is “strongly committed” to containing inflation, adding that a recession may be likely. Powell remains open for further comments today. Here is your morning rap.

3. Today on Deck: PetroChina Co., Ltd., FedEx, and Blackberry, all reporting.

4. Goldman Sachs shares where investors can make the most money when stocks finally begin their recovery. Bank analysts say the prospects for the stocks will be better by the end of this year. Here’s how they say you can know when it hits the bottom.

5. Altria fell 10% after a report said the FDA would ban Juul vaping products from the US market. Altria paid $12.8 billion for a 35% stake in Juul in 2018, when the product boomed among teens. Now, Juul’s market share in US e-cigarettes has dropped to second place—which could be a boon to other US tobacco makers.

6. Vladimir Putin said that Russia’s trade with China, India, Brazil and South Africa has boomed since the start of the war in Ukraine. According to the Russian president, business has grown by 38% – and Moscow continues to generate large amounts of money from oil and gas sales.

7. FTX founder Sam-Bankman Fried exits BlockFi. He loaned $250 million to the struggling crypto lender. But it wasn’t the first of this month – last week the billionaire also extended a $485 million loan to Voyager Digital.

8. These stable-returning stocks can help you profit from an outlook that has been overlooked but is poised to return. While bear market craters share prices, Jefferies says investors tend to sell off prudently priced growth stocks — which puts them in a position to recover after underperforming.

9. The “super savers” break down the strategies they used to save more than half their income. If you’re looking to make the most of your paycheck, use these tried-and-true savings tips for everything from house hacking to tracking your spending habits.

Madison Hoff / Insider

Madison Hoff / Insider

10. Companies are passing high costs to buyers at the fastest pace since the 1950s, a new study has found. Corporate markup hit a record high in 2021, with brands charging around 72% more than their input costs on an average. Researchers say one way to tackle rising inflation is to reverse the surge.

Curated by Phil Rosen in New York. (Feedback or suggestion? Email prosen@insider.com or tweet @philrosenn,

Edited by Max Adams (@maxradams) and Lisa Ryan (@lisaria) in New York.

Source: www.businessinsider.com