When the price of oil, especially diesel, comes down, markets go up. Consumer sentiment goes up. Republican electoral chances go up.
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Instead of dangling an unlikely, inflationary, and imprudent $5000 handout for American citizens if Republicans win the midterm elections, the focus should be on reducing gas and diesel prices. The latter, in particular, is crucial to the movement of our goods.
President Trump has jawboned oil companies regarding price gouging. There is no clear evidence of that. Perhaps a better tack is to invoke the International Emergency Economic Powers Act.
We are reminded that despite our “drill, baby, drill” disposition, oil prices are subject to the vicissitudes of world markets. Geopolitical conflicts have tightened supplies; not only in the Middle East, but Ukraine has targeted Russian diesel refineries. These inflationary developments may be remediable by the IEEPA, which provides opportunities to regulate or prevent exports during a declared national emergency that addresses an unusual and extraordinary threat to the U.S. economy.
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Invoking the IEEPA may make sense because the U.S. is the top diesel-producing country. However, since the market is global, refiners are incentivized to sell to the highest bidder. Given refinery disruptions overseas, that often means foreigners.
SCOTUS struck down the use of the IEEPA when it came to tariffs, but who can deny that soaring oil prices — especially diesel — do not present a threat to our economy? An even bigger threat is the socialists who are masquerading as Dems (though the pretense is off). As long as diesel prices remain elevated, contributing disproportionately to inflation, the higher their chances at the midterm polls.
For sure, get rid of any remaining ESG restraints on refiners — it is Diesel, not DEI-sel. The price of which has gone nearly parabolic, further gassing the socialist affordability narrative. If that translates at the polls, it constitutes a national emergency.
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Image: Tony Webster