OPEC+ could be on the verge of one of the largest production cuts in two years
- White House officials would undoubtedly have a 'panic attack' as they attempt to dissuade the 23 crude-producing countries and its allies, such as Russia, from making the cuts
- Possible export bans on gasoline, diesel, and other refined petroleum
- Biden administration could also push forward with an anti-trust bill targeting OPEC
The Energy Department is analyzing an export ban
- Despite Biden's SPR drain, hitting levels not seen since 1984, the export ban could be the most controversial move yet by the desperate administration to tame pump prices ahead of the midterm elections next month.
- Biden's political emptying of the SPR has left it with a record low of just 22 days of supply...
Potential Economic Impact of a Proposed Export Ban
- An export ban could result in the shuttering of an estimated 1.3 million barrels per day of US refining capacity (7% of US total) due to trapped refinery production in the Gulf Coast.
- Could result in higher product prices for US fuel consumers, with more than two-thirds likely to experience price increases of more than 15 cents per gallon for gasoline and a 45 cent per gallon increase for distillates, and could cause a net loss to US GDP of $44 billion in 2023
- It could eliminate 85,000 jobs this year and 35,000 job losses during 2023.
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