It has been said that President Biden’s decision to light weight The Strategic Petroleum Reserve (which works in tandem with China, India, Japan, South Korea and the UK) may not do much by reducing gas prices. But why exactly is that? And if there is an impact, when can consumers expect to see it?
A senior administration official said it “could still take weeks” for the barrels related to Tuesday’s announcement to hit the market – “mid to late December, depending on market demand.” CNN – means there is “little hope of immediate relief,” Bloomberg Write.
Another problem – the ability to exploit the reserve has been in place for so long that many traders say it has been “baked into the price of oil”, Bloomberg take notes, give an explanation why oil prices rise after Biden’s announcement. There is also the issue of angry OPEC officials, who may have reacted to the news by “canceling their own plans to increase production, denying the addition of stockpiles to the market.”
Furthermore, it is not yet clear what kind of crude oil will be released at this time. If “that’s not the kind of oil refineries are looking for, it will probably be stored in oil storage tanks or exported, which means it probably won’t have a broader impact, i.e. a reduction in oil prices.” domestic oil prices”, explained Bloomberg.
According to CNN report. That said, climate activists are worried “Biden’s push to lower energy prices is undermining his lofty climate goals,” per Articles washington (although the president briefly addressed this concern in his Tuesday remarks).
“There’s a huge contradiction in their actions right now,” said Jean Su of the Center for Biological Diversity.
https://theweek.com/joe-biden/1007435/will-bidens-oil-reserves-plan-actually-save-you-cash-at-the-pump Will Biden’s oil storage plan really save you money on pumps?