Say goodbye to $2.30 gas if Trump goes hard after Venezuela
When you’re the president, cheap gas is a good policy.
President Trump understands this. It therefore pledged to lower gas prices during the campaign and why it is celebrated when gas prices were the lowest in more than a decade for the weekend of July 4. Now Trump faces a dilemma: he wants to fight against enemies like Venezuela, but could push up gas prices in the United States.
Trump is not a fan of Venezuela’s president Nicolás Maduro. Maduro is called a “bad leader” and a “dictator.” Trump is one of many world leaders who promised “strong and fast economic actions” if Maduro has held a “farce” election over the weekend to seize power by replacing the Venezuelan legislature with a more precise body him. Maduro held the vote anyway, calling Trump “bandit”.
The White House has debated stopping all sales of Venezuelan oil to the United States, but it did not go so far. On Monday, the Trump Administration has imposed sanctions on Maduro, which prohibits doing business with Americans or anywhere in the United States.
The President understands that this is a bad policy at home to raise gas prices. Venezuela provides 10% of America’s oil imports, according to the US Energy Information Administration, which is Canada’s third largest supplier and Saudi Arabia. Philip Verleger, an energy economist who heads consulting firm PKVerleger LLC, predicted that oil prices could rise to $ 10 a barrel if Trump totally banned Venezuelan oil.
“Prices would rise like a rocket,” Verleger said. “Gas prices in the US would increase by 25-30 cents per gallon in a few weeks.”
The average price of regular gasoline in the US Is now $ 2.31 a gallon, according to the EIA. This is roughly the same as when he took over Trump. Any stock could now send oil prices in the popular August vacation month.
“Someone in the White House probably recognizes the last thing the president needs right now is the anger of people who live from check to check and voted,” said Tom Kloza, global head of analysis Energy Price Information Service of the oil.
Republican Senators John McCain and Marco Rubio of Florida urged Trump to hit Venezuela harder after Sunday’s vote. Trump want to do much more than the sanctions imposed by the United States last week on 13 venereal eminently linked to the Maduro government. McCain tweeted Sunday, “We are with the people of Venezuela today, deserve democracy – not the mock elections and repression of Maduro.”
On Monday, Treasury Secretary Steve Mnuchin opened the possibility of more severe actions. He said the White House “would consider additional sanctions.”
There is a humanitarian crisis in Venezuela. People are literally starving. The country has one of the worst economies in the world, and there is virtually no food in supermarkets. Things are so bad that the paper of rationing toothpaste and toilet.