skaman306 via Getty Images
The president of United States, Joe Biden, announced on Tuesday the largest reduction in its country’s Strategic Petroleum Reserves to date, of 50 million barrels, as part of a coordinated alliance with five other major nations to curb fuel prices.
“The fundamental question is: today we are presenting a great effort to moderate the price of oil, an effort that will encompass the entire planet and that will finally reach the destiny of each person,” Biden said at a press conference, in which he blamed “Producing countries and large companies” to keep supply limited.
The White House explained in a note that the Department of Energy will release 50 million barrels of oil from the Strategic Petroleum Reserves (REP) to address the mismatch between demand and supply of fuel ahead of the Christmas season and under threat of inflation.
The amount includes 32 million barrels that will be exchanged on the market “in the next few months” and another 18 million that were already authorized for sale by the US Congress, however making up a much lower total than expected by the US Congress. operators, around 100 million.
US strategic reserves, located in large underground caverns in the south of the country, are the largest in the world and are currently around 605 million barrels, according to the latest data.
In the past year, “oil prices” have soared 74% and Texas barrel futures (WTI) peaked at $ 85 last month, while the median price of gasoline at the pump has climbed this month. to $ 3.40 a gallon, its seven-year high.
The US is coordinating with China, India, Japan, South Korea and the UK to cut REPs after “several tough weeks of calls and meetings,” which has driven gasoline prices down 10% since the end. October in the wholesale market because of anticipation, explained Biden.
The president criticized that this reduction is not being translated into retail sales and stated that “the price at the pump has not moved a cent”, a gap that he attributed to the supply companies “they are pocketing the difference”, so it has ordered the Federal Trade Commission to investigate them.
Source: by www.huffingtonpost.es.
*The article has been translated based on the content of by www.huffingtonpost.es. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!