That will include 32 million barrels of oil as “an exchange over the next few months, releasing oil that will eventually return to the Strategic Petroleum Reserve in the next few years,” as well as 18 million barrels that “will be an acceleration into the next several months. of an oil sale that Congress had previously authorized.
The objective of this measure is control the rise in energy prices after the group of OPEC producers and their allies, known as OPEC +, will reject repeated requests from Washington and other consuming countries to pump crude more quickly to meet the growing demand.
The decision comes amid recognition that inflation and high gasoline prices impact Joe Biden’s credibility and his handling of the pandemic exit.
Yesterday, a dozen Congressional Democrats called in a letter to President Joe Biden to combat prices not only by freeing barrels from the US Strategic Petroleum Reserve but also by prohibiting oil exports. The letter sent to Biden adds to the pressure facing the White House, including from his own party, to lower prices that are angering Americans and contributing to the biggest rise in inflation in decades.
Qualifying the matter as “urgent question“House Democrats led by California Rep. Ro Khanna called on Biden to ensure” affordable and reliable energy for American families. “
“We must use all the tools at our disposal to reduce gasoline prices in the short term.”said the letter.
The OPEC +, which brings together the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, is scheduled to meet on December 2 to discuss its production strategy. The impact of a coordinated oil release would depend on the timing and quantity, but a release of more than about 60 million barrels in about 30 days would be seen by the market as “very negative for prices”Said Vivek Dhar, an analyst at the Commonwealth Bank of Australia.
“This situation occurs at a time when this market was changing and world oil reserves are increasing. So this could cause prices to fall more steeply than is thought, “he warned.
This morning, a barrel of crude oil traded today with low values in the international markets of New York and London. West Texas Intermediate (WTI) crude, which operates on the New York futures market (Nymex), fell 1.26% this morning and traded at US $ 75.78 a barrel in contracts with delivery in January.
Similarly, Brent oil from the North Sea, which does so on the London electronic market (ICE), lost 0.90% and a barrel was agreed at US $ 78.98 also in the contracts for January, according to as reported by the Bloomberg agency. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) reported that its crude oil basket closed yesterday at $ 78.90 a barrel, compared to $ 80.32 on Monday, which represented a decrease of 1.77 %.
Source From: Ambito
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