President Trump announces steps to boost oil production — The Hill
In the United States, President Donald Trump announced that he would invoke the Defense Production Act to increase domestic oil production and refining capacity. This comes amid high prices for fuel, food and housing ahead of the November 3 election, The Hill reports.
The average price of diesel fuel in the United States stood at $6.28 per gallon on Friday, compared with $3.72 in February, before the start of U.S. strikes on Iran. According to economists, Trump's agreement to import hundreds of thousands of tonnes of diesel from aggressor state Russia had no lasting effect on fuel prices.
Oil and food prices
Stanford University economist Neale Mahoney said gasoline prices would not fall without an end to the war with Iran, increased production and the restoration of shipping through the Strait of Hormuz. Negotiations to reopen it, he said, have made no noticeable progress in recent weeks.
On Friday, Brent crude rose by more than 3% to $116 per barrel, while West Texas Intermediate gained nearly 4% and closed at $103. Mahoney also warned that expensive diesel and reduced fertilizer exports through the Strait of Hormuz are gradually affecting agricultural prices. He named El Niño as an additional factor putting pressure on global food supplies.
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The price of ground beef in the United States remains near $6.80 per pound, despite Trump's August order to import 300,000 metric tonnes of foreign beef. The 30-year fixed mortgage rate stands at 7.32%.
Voter sentiment and the housing market
The National Association of Realtors reported that pending home sales in September fell by 7.3% from August and by 11.3% year-on-year. On Thursday, Trump signed an executive order aimed at reducing insurance premiums, refinancing costs and rates on some government-backed mortgages, but experts do not expect a noticeable effect before election day.
According to an October survey by the University of Michigan, consumer sentiment in the United States fell to nearly a record low, the second-lowest level in history. A CNBC poll of one thousand registered voters showed that 80% of respondents rate the state of the economy as fair or poor, while 33% approve of Trump's handling of the economy, compared with 63% who disapprove.
Republican strategist Brian Darling said Americans do not feel positive economic indicators because they are spending more on gasoline and food. In his view, further increases in fuel prices before the election could become a decisive factor in a number of competitive races.
