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Tuesday 23 November 2021

Biden orders 50 million barrels of oil released to try to cut fuel prices


It is a coordinated attempt with other energy consuming nations such as China, India, Japan, South Korea and the United Kingdom. American reserves are the world's largest emergency supply.

President Joe Biden announced Tuesday that he has ordered the release of 50 million barrels of oil from America's strategic reserves, in a coordinated attempt with other countries to cut rising fuel prices .

"This decision will be made in parallel with other major energy consuming nations, such as China, India, Japan, the Republic of Korea and the United Kingdom, " the White House said in a statement .

The joint initiative, presented as unprecedented by the US government, seeks that, with the increase in supply, prices fall mechanically.

American reserves are the world's largest emergency supply.

Will start in December - will not be noticed in Thanksgiving trip prices

The release will begin between mid and late December , and it is possible that new interventions to stabilize the market will take place, "in response to a pandemic unique in the century," a senior government official informed the media and the AFP agency reported. .

"As the president has said, consumers are now suffering at service stations, " the official admitted.

"The president is ready to take additional action if necessary and is prepared to use his full authority, working in coordination with the rest of the world to maintain an adequate supply as the pandemic is left behind," he added.

Crude prices have already been falling by around 10% in recent weeks. But Biden has been criticized that despite falling oil prices, gasoline prices have only risen for end consumers.

This circumstance has affected the pockets of the common American and also Biden's popularity, at low levels.

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