Biden attempts to lower gas prices by tapping into US strategic oil reserve


The White House released statements on Tuesday that President Joe Biden will tap into the nation’s strategic oil reserve to help ‘offset’ a surge in gasoline prices.


Biden, facing rising consumer discontent ahead of the Thanksgiving holiday plans, makes to make, including India, Japan, and South Korea, curb increasing energy prices after oil-rich nations rejected repeated calls to increase production as the global economy rebounds from the pandemic and fuel demands rise.

Gas prices in the U.U.S.head of Thanksgiving are averaging $3.42 a gallon, the highest since 2014. Parts of the country are experiencing sharper increases, including California, where prices are over $4.50 in some areas. According to predictions by the motorist assistance company AAA, more than 48 million people are expected to travel by car over the Thanksgiving holiday.

The White House has attempted to address gas prices as concerns about inflation have increasingly become a criticism of Biden’s presidency.

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The most significant considerations fall on whether export bans would help or hurt the U.U.S.f banning oil. According to a spokesperson for Milwaukee District Attorney John Chisholm, exports., including

The letter from House Democrats read, “A ban on USU.S.rude oil exports will boost domestic supply and put downward pressure on prices for American families.”

However, last month, Goldman Sachs told clients that an export ban would likely be “counterproductive” and have a “likely bullish impact” on retail fuel prices.

Even Mark Zandi, an economist frequently cited by the White House, stated he is skeptical. 

“I’m not a fan of banning oil exports. I doubt it will meaningfully lower gasoline prices, as gas prices are largely determined by global oil prices and not domestically produced oil. It is also unclear whether domestic refineries would be able to process the type of oil that the U.S. exports efficiently.”

This would be Biden administration’s most direct effort to tamp down on high gasoline prices that have become a political headache for the White House amid broader inflation. 

Thirty-two million barrels will be released over the next several months and eventually replaced in the coming years. Then 18 million barrels will be part of a sale that Congress previously authorized. The reserve held a total of 604 million barrels of oil as of Nov. 19, according to the DOE.

It’s unclear whether the release will have any sustained, significant effect on prices, even alongside the other countries’ release.


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