After the closure of OPEC +. Reserves are already at historical lows
ROME, Oct. 19 (Askanews) – The US Department of Energy has announced that another 15 million barrels of strategic reserves will be released by December. The White House reported that this new maneuver would complement the record 180 million barrel intervention that US President Joe Biden decided last spring to stabilize oil and auto fuel prices.
Also, according to the White House, Biden plans to later buy back crude oil for strategic reserves “when prices are at or below $67-72 a barrel,” adding global demand when these levels are reached.
Strategic oil and fuel reserves in the United States, theoretically prepared to deal with war or natural disaster, reached all-time lows after last spring, before the midterm elections, the Biden administration decided to leverage them aggressively to contain price hikes at the pump, and thus, obviously, their problematic impact. Likely on electoral consulting.
This latest intervention comes after the decision of OPEC Plus, the extended exporters cartel version of Russia and other non-aligned producers, to cut crude oil supplies by two million barrels equivalent compared to official levels. This move infuriated the Biden administration, which promised unspecified measures regarding the leading country in the Organization of the Petroleum Exporting Countries, Saudi Arabia.
Biden also intends to “require oil companies to pass on to consumers,” in terms of lower prices, as part of the additional profit margins they make from fuel sales.