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

Top of the morning readers, Phil Rosen here. Yesterday I sat down with the CEO of Doodles — an NFT project of cute sketches that has topped $500 million in sales. 

He explained how he’s aiming to transform the NFT collection into an entertainment brand, and that Doodles could still hold value through a recession. Get the full scoop in my latest dispatch from the conference.

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

Let’s see what he’s planning — and how it impacts oil markets. 

1. High prices means Biden wants a holiday — a 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 comes as prices at the pump weigh on his re-election ambitions and inflation squeezes Americans.

While it’s possible that relatively cheaper gas actually fuels more demand — thus pushing prices up even further — oil actually slumped through most of yesterday, falling as much as 7%.

That’s because the market is also digesting a wave of recession forecasts that would almost certainly lead to a diminished outlook for oil demand. 

As the White House points to war in Ukraine as reason for high gas prices and economic turmoil, the recession alarms continue to ring. 

Deutsche Bank’s CEO put the odds of a global recession at 50%, and JPMorgan’s Jamie Dimon has warned of an impending economic “hurricane.”

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

“We have the probability of a recession at about 40% going into next year. We wouldn’t see that until next year just because the tightening that we’re seeing around the Fed generally takes around 12 to 18 months …read more

Source:: Businessinsider

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