Oil prices jumped more than 2 percent on Nov. 23 following plans by the White House to tap emergency oil reserves to lower gas prices. President Biden's decision comes as U.S. consumers are paying multi-year high gas prices. U.S. oil prices surged following the announcement to release 50M barrels of oil from the country's four strategic oil reserve stockpile sites to combat high gas prices. The sites are deep underground storage caverns created in salt domes along the Texas and Louisiana Gulf Coast. West Texas Intermediate crude prices climbed as much as 2.6 percent to $78.75 a barrel. Brent oil's international benchmark picked up 2.8 percent to $81.94. The President authorized the Energy Department to release the 50M barrels from the U.S. Strategic Petroleum Reserve. “The move wasn't the game-changer that it could have been," wrote Craig Erlam senior market analyst at Oanda. "Instead, it appeared to serve more as a warning to OPEC+ to not ignore consuming countries." Energy prices have contributed to the fastest spike in inflation since 1990. In October, gasoline prices climbed 6.1 percent. China, India, Japan, South Korea, and the UK were also planning to release oil from their reserves, the White House said. (Source: Business Insider 11/23/21) Oil surges after US announces plans to tap emergency reserves to tackle rising gas prices (businessinsider.com)
No comments:
Post a Comment