Overview
- The White House issued a 60-day waiver of the Jones Act, allowing foreign-flagged tankers to move oil, natural gas, fertilizer and coal between U.S. ports to ease distribution bottlenecks.
- Treasury separately granted a limited license for U.S. entities to conduct certain transactions with PDVSA in an effort to increase available crude supplies.
- Gasoline now averages about $3.84 per gallon, up roughly 27% since late February, and diesel has topped $5, according to AAA.
- Analysts say the moves may trim prices only marginally because the effective halt of traffic through the Strait of Hormuz—normally carrying about one-fifth of global oil—remains the primary constraint.
- The steps accompany a record IEA-coordinated reserve release, including 172 million barrels from the U.S. SPR, as maritime industry groups argue the waiver will not lower prices and could displace American workers.