US Challenges OPEC+ With Release of Crude Reserves

US Challenges OPEC+ With Release of Crude Reserves
US Challenges OPEC+ With Release of Crude Reserves

The administration of US President Joe Biden announced on Tuesday it will release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude.
Biden, facing low approval ratings amid rising inflation ahead of next year’s congressional elections, has grown frustrated at repeatedly asking the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, to pump more oil without any response, Reuters reported.
“I told you before that we are going to take action on these problems. That is exactly what we are doing,” Biden said in remarks broadcast from the White House.
“It will take time, but before long you should see the price of gas drop where you fill up your tank and in the longer-term, we will reduce our reliance on oil as we shift to clean energy,” he said.
Crude oil prices recently touched seven-year highs and consumers are feeling the pain of the increase in fuel costs. Retail gasoline prices are up more than 60% compared to that of last year, the fastest rate of increase since 2000, largely because people have returned to the roads as pandemic-induced restrictions have eased and demand has rebounded.
Under the plan, the United States will release 50 million barrels, the equivalent of about two and a half days of US demand. 

Add new comment

Read our comment policy before posting your viewpoints