The U.S. Proposes Extending Jones Act Waiver to Lower Oil Prices, Trump Calls Negative Polling "Fake News"

August 5th - According to Reuters, the U.S. government is expected to extend the temporary waiver of the Jones Act in the coming days to ease domestic fuel supply pressure and lower gasoline prices.

The Jones Act requires that goods transported between U.S. ports must be carried on ships built in the U.S., owned by U.S. companies, and operated by U.S. crews. This waiver aims to increase energy transportation flexibility and alleviate fuel supply bottlenecks. The current waiver, the longest in the history of the Act, is set to expire on August 16th and has been used nearly 200 times in the past approximately four and a half months.

U.S. Energy Secretary Chris Wright stated that the waiver has helped reduce energy prices in California and parts of the U.S. East Coast, and the government is expected to continue the extension. However, analysts believe that the impact of this measure on oil prices is limited and may only lead to a few cents decrease in gasoline prices.

There is currently internal disagreement within the U.S. government about expanding the scope of the waiver. Some Republican lawmakers and maritime industry organizations are concerned that overly loosening the Jones Act may weaken U.S. domestic shipping capabilities and national security interests.

Meanwhile, Trump is facing political pressure due to rising oil prices and declining approval ratings. Several polls show his approval rating dropping to around 32%-34%, to which Trump responded by calling the surveys "fake polls" and stating that his true approval rating is the "best ever recorded."

The recent Iran conflict has affected energy transportation, causing U.S. gasoline prices to surpass $4 per gallon once again. The Trump administration is seeking to lower consumer fuel costs by expanding energy transportation flexibility, pressuring oil companies, and other means.