Number Ones could fire allies and partners, according to the White House
30 to 50 million barrels of oil
.
An “unprecedented” move
After passing the embargo on Russian energy products, Biden announces what he calls “the largest release of oil reserves in history,” an “unprecedented” move. The additional shipments “will ease the suffering of Americans” who “pay for a dictator’s decisions” and “serve as a bridge through the end of the year when domestic production picks up.”
“Putin isolated”
“We will not allow Putin to exploit his energy resources,” warns the US President, after which his Russian counterpart now appears to be “isolated” because he “fired some of his advisers or placed them under house arrest”.
Biden against the oil companies
Biden then whips US oil companies sitting on their record profits (“$80 billion last year”) without pumping more crude oil by taking advantage of the warrelated price increase (“some like that increase”). With his decision, the US President takes the lead at the OPEC+ meeting, which was limited to an incremental and modest increase of just 432,000 barrels per day, despite urging from the international community to significantly increase crude oil production. But already the first rumors about Biden’s plan were enough to bring the price of black gold down (by about 4%) on the main world markets from New York to London after the record above $130 a barrel in early March. .
Oil closes at $101.11 in New York
Meanwhile, oil closed “heavy” in New York, where prices fell 6.22% to $101.11 a barrel.
Race against prizes
The White House tenant had already drawn on strategic reserves, releasing 50 million barrels in November and another 30 in early March, but to little effect. Now he’s taking a bold step to calm the onslaught of consumer prices, which continued to rise 6.4% per year (0.6% monthly) in March, and gasoline, which is still above $4 a gallon . For Biden, inflation is the biggest domestic concern because it risks jeopardizing the November midterm elections, which are already struggling Democrats.
Strategic Reserves
They were created in 1975 against oil shocks and kept in huge caves up to 800 meters deep along the coast of the Gulf of Mexico. They currently have 568 million barrels but can store up to 714 million.
Two initiatives on the subject of energy
The President also announced two other initiatives in the field of energy. On the one hand, he asked Congress to impose fines on oil companies that do not produce in the states for which they are licensed. On the other hand, it invoked a 1950s martial law to guarantee the production of key minerals (such as lithium, nickel, cobalt and graphite) needed for electric vehicle batteries.