Biden Will Release Oil Reserves To Battle High Gas Prices

Bryan Dijkhuizen

President Joe Biden announced on Tuesday the release of emergency oil reserves in order to offset rising gasoline costs ahead of the popular Christmas travel season, but it will be several weeks before the barrels are available on the open market.

"We're taking action. A big part of the reason Americans are facing high gas prices is that oil-producing countries and large companies have not ramped up the supply of oil quickly enough to meet the demand. And the smaller supply means higher prices globally, globally, for oil," Biden said.

According to the Department of Energy's Energy Information Administration, the United States utilized around 20.5 million barrels of oil per day in 2019 and approximately 18.1 million barrels per day in 2020.

The release is intended to alleviate the global shortage of oil supplies, but its practical impact may be restricted due to the nature of the discharge.

According to the Department of Energy's Energy Information Administration, the United States utilized around 20.5 million barrels of oil per day in 2019 and approximately 18.1 million barrels per day in 2020.

According to the EIA, gasoline consumption will be reduced in 2020 as a result of the Covid-19 epidemic.

It is planned that this release will take place in conjunction with a number of other nations, such as China, India, the United Kingdom, Japan, and the Republic of Korea.

Gas costs, according to officials, might possibly be reduced more significantly as a result of the joint effort.

Amid rising pressure to cut soaring gas costs, which are contributing to the worst inflation increase in decades and driving irritation and outrage among Americans, the White House has made the decision to raise the minimum wage to $15 an hour.

According to the White House schedule, the President will speak Tuesday afternoon on the economy and lowering expenses for the American people, just hours before departing for a Thanksgiving break on Nantucket, off the coast of Massachusetts.

Officials in the Biden administration have warned the Saudis for weeks that the United States would seek other solutions if the price of crude oil rose beyond $85 a barrel, as it did late last month, according to the officials.

However, Saudi Arabia has remained steadfast in its refusal to boost production and has factored in the opinion of US officials, the chance that the United States would achieve a nuclear agreement with Iran, according to two senior US officials.

Biden has also taken additional steps. Last Monday, President Obama requested the Federal Trade Commission to quickly examine whether oil and gas firms are driving up gas prices via unlawful activities.

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PoliticsBuild Back BetterJoe BidenGas PricesOil

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