Biden releases record crude stocks to lower fuel prices

Biden releases record crude stocks to lower fuel prices

Biden and the voters

The release of US crude will dwarf previous uses of strategic reserves announced by Biden alongside other countries on March 1 after the Russian invasion, and also last year, in response to rising inflation.

Despite a recovering economy and the reversal of the COVID-19 pandemic, Biden gets little credit from voters, who instead blame him for rising prices everywhere from the grocery store to auto dealerships. cars.

Disruptions in the supply chain related to the different rates of economic recovery in the world are part of the phenomenon of inflation.

Also behind this politically dangerous trend are fuel costs, which, in turn, drive up transportation prices for almost all goods.

And for drivers, price shocks at gas stations are a constant source of irritation.

Gasoline prices are currently averaging $4.23 a gallon, 47% higher than a year ago.

After Biden’s announcement, a barrel of crude fell almost 7% in New York to 100.28 dollars and in London 6.44% to 107.91.

“Is it worth giving up a million barrels a day to get a price cut of just $5 (a barrel)?” asked Matt Smith, an analyst at Kepler.

“Although this use of reserves will certainly help contain the market in the short term, it does not provide a long-term solution,” he added.

Crude oil prices reached almost $140 in March due to concerns about Russia, one of the world’s largest producers, which sparked a war in Ukraine and was the target of multiple international sanctions.

Prices have retreated somewhat since the US banned Russian imports on March 8, but have since hovered around $100.

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