Tuesday, November 23, 2021
Biden wants to calm the market
USA taps into strategic oil reserves
“Consumers suffer agony at the gas pump,” diagnosed US President Biden. He orders the release of millions of barrels of oil from the emergency reserves to cushion the rapid rise in prices. This is obviously an internationally coordinated action.
In the face of soaring energy prices, US President Joe Biden has ordered the release of 50 million barrels of oil from the strategic reserve. A barrel is 159 liters. Further measures are not ruled out, said a government representative. According to the President’s Office, there are also announcements from China, India, Japan, South Korea and Great Britain.
In the wake of the pandemic, countries around the world are struggling with consumer demand for goods exceeding supply. The aim now is to lower prices for consumers in the USA and to compensate for the imbalance between demand and supply. “As the president said: Consumers are in torment right now at the pump,” said the government official.
“The president has worked with countries around the world to address the post-pandemic supply shortage,” said the office of the President. The US is sitting on the world’s largest emergency reserve. Biden is under pressure in view of the comparatively high inflation and falling approval ratings in the population.
After that announcement, the price of American WTI oil fell 0.2 percent to $ 76.31. Brent, however, rose 0.3 percent to $ 79.82.