USA31 August, 20263 min read
Donald Trump Accuses U.S. Oil Refiners of Gouging Americans, Orders Justice Department Probe
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Trump accuses U.S. refiners of price gouging and calls for a DOJ probe. He will host major oil industry executives at the White House to pressure prices.
White House Pressure on Refiners
President Donald Trump accused U.S. oil refiners of gouging Americans and called for a Justice Department investigation after gasoline prices spiked amid the ongoing conflict with Iran, with prices averaging over $4 a gallon. On Tuesday, Trump is expected to host many of the companies at the White House to celebrate efforts to keep the market well supplied in hopes of managing gasoline prices, while executives weigh whether sending their CEOs could turn the meeting into an uncomfortable encounter. Reuters reported that companies received invitations only late last week with few details about the event or even who else would attend, leaving some to consider the optics of participation.
“You want to be at the table, but you also have to think about what could happen once you're there.”
A company official involved in advising what executives would attend said, "You want to be at the table, but you also have to think about what could happen once you're there." Another company official said the gathering also offered executives a rare opportunity to raise issues directly with Trump, including the administration’s biofuel policy and the Jones Act.
Optics, Exxon's Absence, and Debate
The Reuters account tied the meeting’s unusual calculation to a prior White House clash in January, when Exxon CEO Darren Woods drew Trump’s ire by calling Venezuela "uninvestable" in its current form. Trump later said he was "inclined to keep Exxon out" of Venezuela, accusing the company of "playing too cute," and Exxon was not invited to Tuesday’s meeting, according to sources. Stephen Brown, a former Washington energy lobbyist and consultant who has advised CEOs on presidential politics, said he would not recommend sending a CEO, calling it "a made-for-TV moment, strictly performative, that can only embarrass the company."
The White House said the meeting will focus on expanding U.S. refining capacity, arguing years of Democratic policies led to refinery closures and discouraged investment in new facilities and expansions. A White House official said the U.S. is operating at nearly 100% of its existing refining capacity, leaving the administration focused on "concrete, near-term steps" to increase capacity and ultimately lower gasoline prices for consumers.
Venezuela Deal and Energy Stakes
The meeting’s backdrop includes a U.S.-Venezuela energy agreement announced by Trump last Friday, under which the United States would enter a 25-year partnership with Venezuela’s interim president Delcy Rodriguez.
EnergyNow reported that Rodríguez said the accord would target development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day, and she described it as a “historic” deal on state broadcaster VTV.
EnergyNow also said Trump provided few details on the agreement, saying the U.S. secured a majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private business.
Investing.com framed the broader market risk around the U.S. Strategic Petroleum Reserve, saying it holds just 289.7 million barrels, the lowest since 1982, and that the U.S. Strategic Petroleum Reserve at its lowest level since 1982 leaves less room to absorb shocks.
Investing.com added that when U.S. forces struck two Iranian missile launchers on Larak Island on Sunday, August 30, and Iran retaliated by hitting U.S. bases in Jordan, the escalation cycle restarted, tightening the link between conflict and fuel prices.