Oil Prices Dip As Biden Hypes Asinine Move

Strategic

Oil prices dipped Thursday in reaction to the news that  Joe Biden will likely push the release of approximately 180 million barrels of oil from the U.S. Strategic Oil Reserve in an initiative to lower gas costs.

Biden will supply statements Thursday afternoon on his administration’s strategy to combat U.S. gas rates, which skyrocketed in March to their highest point yet since 2008 amid increasing need as well as Russia’s war in Ukraine.

The administration is set to release 1 million barrels of oil from the reserve daily for the next 6 months, the White House claimed in a fact sheet.

That would certainly note the largest-ever release from the critical books since they were produced in 1974.

“This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up,” the fact sheet said.

The Department of Energy will make use of the earnings from the release to replenish the get.

Markets reacted rapidly to the information on Thursday. Futures for the global benchmark Brent Crude fell by 4.59% to $108 a barrel as of the very early afternoon, while futures for U.S.-based West Texas Intermediate dropped by 3.82%, down to $104 a barrel.

The choice to tap America’s Strategic Oil Get would be the 3rd such action taken on by Biden, who has actually sought to fight increasing political pressure from Republicans to lower costs in advance of the midterm political elections.

Last autumn, the administration licensed the launch of 50 million barrels from the strategic reserve in November, and in March, it joined other countries and also released 30 million gallons amidst Russia’s war in Ukraine.

Biden extolled the virtue of his plan during remarks March 31st,

“Today, I’m authorizing the release of 1 million barrels per day for the next six months — over 180 million barrels — for the Strategic — from the — from the Strategic Petroleum Reserve.

This is a wartime bridge to increase oil supply until production ramps up later this year.  And it is by far the largest release from our national reserve in our history.

It will provide a historic amount of supply for a historic amount of time — a six-month bridge to the fall.

And we’ll use the revenue from selling the oil now to restock the Strategic Petroleum Reserve when prices are lower so we’ll be ready — we’ll be ready for future emergencies.”

H/T The Washington Examiner

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts