US to release oil from reserves to drive down petrol prices

President Joe Biden has confirmed that America will release 50m barrels of oil from America’s strategic stockpile as petrol prices continue to soar which could jeopardize the world economy’s recovery.

The decision will be in conjunction with moves by China, India, the UK, Japan and South Korea.

There has increasingly been murmurs that an increase was coming as a group of OPEC+ nations stood firm against America’s demands for them to increase their supply.

Biden and Kamala Harris have been addressing rising levels of inflation recently, which is a key reason for their efforts to get more oil onto the market.

Oil supply has been way behind resurging levels of demand seen as the world economy fights back from the pandemic.

Critics have pointed to the minimal impact of the increase in capacity. America consumes 18m barrels of oil a day, which would eat into newly released reserves within three days.

Biden, to the joy of environmental activists, closed down pipeline and oil production across swathes of America, which perhaps would have served as a better solution to today’s woes.

Furthermore, since the announcement, oil prices have spiked and there could be more to come, as Kyle Bass explains in the thread below.

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