A billionaire oil refinery owner reveals a “simple” solution to reduce inflation

United Refining Company and CEO of Gristedes John Katsimatidis revealed the “simple” solution to lower inflation, which is currently near 40-year highs.

talking on “Varney & CoOn Wednesday, the billionaire businessman revealed America’s “salvation” with regard to reducing energy prices, stressing that they would decrease “if North America opens its taps.”

working circle revealed earlier this month The Consumer Price Index, a broad measure of the prices of everyday goods including gasoline, groceries and rents, rose 8.5% in July from a year ago, down from the 9.1% year-on-year recorded in June. Prices were unchanged in the one month period of June.

Those numbers were lower than the headline 8.7% and the 0.2% monthly gain that economists at Refinitiv had expected, and likely a welcome sign. Federal Reserve It seeks to moderate price gains and tame consumer demand.

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Severe inflation has put severe financial stress on most American families, who are forced to pay more for daily necessities such as food and rent.

Although there is some real reprieve for American families in July in the form of Low energy priceswhich contributed to lower general inflation, and price increases remained stubbornly high for other commodities, including foodstuffs.

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USO United States Oil Fund LP 73.12 -2.35 -3.12%
BNO United STS BRENT OIL FD LP UNIT 29.96 -1.02 -3.29%

The food index rose 1.1% in July, bringing the 12-month increase to 10.9%, the highest since May 1979. Consumers paid more for items such as grain, chicken, milk and fresh vegetables.

On Wednesday afternoon, US West Texas Intermediate (WTI) crude was trading lower at around $90.08 a barrel, while Brent crude, the global benchmark, was down at $96.59.

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John Catsimatidis Oil

United Refining and Gristedes CEO John Catsimatidis discuss oil prices at Varney & Co. (Photo by Andrew H. Walker/Getty Images/Getty Images)

“Right now between Canada and the US, we’re probably going to be producing 16 million barrels a day. We’re probably going to get to about 18 or 20 billion barrels a day,” Katsimatidis said. “This would make North America self-sufficient.”

The business leader then criticized the Biden administration for “begging” Iran, Venezuela and Saudi Oil When the United States is “self-sufficient”.

Katsimatidis made the comments after it was revealed that the Biden administration was continuing private negotiations with Western allies to apply a global cap on Russian oil prices to avoid a possible occurrence Possible gas price disaster.

The Treasury Department, which is leading the effort, said it was continuing to negotiate the policy it argued was necessary to ensure global and Americanism. Oil prices do not rise in the coming months. The agency, which has been involved in discussions with a number of countries inside and outside the G7, could reach a solution with partners as soon as possible in September.

A cap on Russian oil prices will deny Putin access to funds for his war machine and will put downward pressure on the high oil costs caused by Russia’s unwarranted war against Ukraine. A Treasury spokesperson told FOX Business in the current situation.

“We continue to have fruitful discussions with the G7 and other allies and partners who share a common interest in helping consumers by preventing further disruptions to global oil supplies and reducing Kremlin revenues,” the spokesperson added.

In late June, the United States and the allies of the Group of Seven They declared their intention To implement a price cap, which would effectively prevent international oil buyers from buying the Russian product at a price greater than some of the numbers set during negotiations. Treasury Secretary Janet Yellen said the policy would reduce Russian government revenue and stabilize global markets.

Katsimatidis argued: “Anything we do against the Russians, everything appears as comic books. It just doesn’t work.”

He also argued on Wednesday that “the right price for North American oil could go down to $65 to $75 a barrel.”

“Inflation goes away if we get it.” [oil] It’s down to $75 a barrel and we don’t have to kill the rest of the US with higher interest rates. “It’s that simple,” Katsimatidis said, noting the Fed’s moves to try to curb persistent inflation by raising rates.

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Policy makers have already approved two consecutive rate hikes of 75 basis points in June and July and confirmed that another massive hike is on the table in September.

Thomas Catenacci of FOX Business contributed to this report.

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