President Biden has announced that he will be authorizing the Strategic Oil reserves of the country to help in combating the surging prices of gasoline.
The White House further stated that India and China are expected to follow the suit of America as oil prices have skyrocketed across the globe.
“Today, the President is announcing that the Department of Energy will make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve to lower prices for Americans and address the mismatch between demand exiting the pandemic and supply,” the White House said.
“And, as a result of President Biden’s leadership and our diplomatic efforts, this release will be taken in parallel with other major energy-consuming nations including China, India, Japan, Republic of Korea, and the United Kingdom. This culminates weeks of consultations with countries around the world, and we are already seeing the effect of this work on oil prices. Over the last several weeks as reports of this work became public, oil prices are down nearly 10 percent,” the White House further stated.
President of America, Joe Biden has been working diligently with other countries in order to address this glaring issue of gasoline prices as well as the scarcity of fuel as the world starts to get out from the harrowing shadows of the pandemic which captured the planet for almost 2 years.
The statement released by the White House further concluded, “The U.S. Department of Energy will make available releases of 50 million barrels from the Strategic Petroleum Reserve in two ways: 32 million barrels will be an exchange over the next several months, releasing oil that will eventually return to the Strategic Petroleum Reserve in the years ahead. The exchange is a tool matched to today’s specific economic environment, where markets expect future oil prices to be lower than they are today, and helps provide relief to Americans immediately and bridge to that period of expected lower oil prices. The exchange also automatically provides for re-stocking of the Strategic Petroleum Reserve over time to meet future needs.”
The experts say that this move will see a drop in gasoline prices immediately but the overall impact will be visible in about two weeks.