The release of oil reserves by Joe Biden is seen as a pointless political move.


The release of oil reserves by Joe Biden is seen as a pointless political move.

President Joe Biden’s decision to release 50 million barrels of oil from US reserves has been panned by many who regard it as a purely political gesture rather than a genuine attempt to lower gas costs.

With Americans paying an average of 50% more at the pump than this time last year, Biden claimed the nation’s Strategic Petroleum Reserve (SPR) release, the largest in history, demonstrated he was “taking action.”

Or, at the very least, his government appears to be acting, which is equally vital. According to Frank Maisano, an energy expert at Bracewell PRG, which represents energy companies, this is the case.

“He had to conduct some sort of virtue signaling to show folks that he was doing something,” he told The Washington Newsday.

“This is him putting out what he can accomplish, even if it won’t make much of an impact. When the market recovers, many will think, “At least he did something.”” The fact that the release was well publicized and coordinated with other countries such as India and China took away the measure’s element of surprise, implying that the market had already factored it in. Following Biden’s announcement, the price of WTI Crude was raised by $1.

32 million barrels will be released, but the rest will be restored to the SPR in the coming years. The remaining 18 million barrels are part of a previously authorized sale by Congress.

Americans may be annoyed by 30-year high inflation and surging prices, but there are doubts over whether the SPR was designed to deal with difficult economic conditions.

“The SPR is for a supply-side event…like a hurricane or a war,” Maisano explained, “but this is not a true supply-side emergency.”

“He told The Washington Newsday that “bad poll numbers are not a good excuse to release oil from the SPR,” but that “the government has the right to do so.” They were given the authority by Congress.” The American Petroleum Institute (API) issued a statement saying that the Biden administration might exercise jurisdiction over the SPR “as they see fit.” However, Frank Macchiarola, API’s senior vice president of policy, economics, and regulatory affairs, stated in a statement that any. This is a condensed version of the information.


Leave A Reply