Pres. Joe Biden Authorizes "Largest Ever Release' From Oil Reserve to Address High Gas Prices
President Joe Biden on Tuesday authorized the release from the U.S.' strategic oil reserve to address and lower the gas prices across the nation.
Biden called the move "largest-ever release," as he announced his plans during his remarks on Tuesday afternoon. It can be recalled that the White House detailed his move earlier in the day, saying the Biden plans to make available releases of 50 million barrels of oil.
"The bottom line: Today we're launching a major effort to moderate the price of oil, and effort that will span the globe in its reach and ultimately reach your gas station," President Biden said.
The president also noted that other countries such as China and India will release their reserves in line with the U.S. move.
However, during his remarks, President Biden admitted that the release of the oil from the Strategic Petroleum reserve "will not solve" the problem about gas prices overnight, New York Post reported.
"While our... combined actions will not solve the problem of high gas prices overnight, it will make a difference. It will take time, but before long, you should see the prices of the gas drop where you fill up your tank," the president said.
Experts Not Impressed with Joe Biden's Release on Oil Reserve
Although Biden unveiled his plans on how to lower the gas prices across the U.S., markets and experts were not glad about his move.
Claudio Galimberti, senior vice president for oil markets at Rystad Energy, said that the problem with Biden's measure is that "everybody knows" that the move will only be "temporary."
"So once it stopped, then if demand continues to be above supply like it is right now, then you're back to square one," Galimberti added.
Meanwhile, Rystad oil market research chief, Bjornar Tonhaugen, told the Wall Street Journal that Biden's move may not lower gasoline prices at all or if it does, it may only take place "with a significant lag time."
However, President Biden said that the price drop is not reflected in the gas prices as the chief executive noted that oil prices were already dropping before the announcement of his plans.
"That fact is the price of oil was already dropping prior to this announcement and many suggest in anticipation of the announcement," Biden said, emphasizing that the price of gasoline in the wholesale market has fallen by "about 10%" in the last few weeks.
The president then blamed the gas supply companies for not lowering their prices at the gas stations.
"In other words, gas supply companies are paying less and making a lot more. And they do not seem to be passing that on to the consumers at the pump.
As of Tuesday, the nationwide average price for a gallon of regular gasoline costs $3.40. The said amount is approximately $1.28 more expensive than the gas prices at the same time last year.
Energy Secretary Struggles to Defend Biden's Oil Reserve Release to Lower Gas Prices
On Tuesday, Energy Secretary Jennifer Granholm struggled to defend President Joe Biden's move about releasing barrels of oil from the said reserve, as she was asked if she has an idea about how many barrels of oil are consumed by the American public.
"I don't have the number in front of me, sorry," Granholm said.
Granholm then underscored that Biden's move will be a "bridge" to lower prices, as she encouraged U.S. oil companies to do domestic drilling.
"We want to encourage them to increase supply. We want to supply to be increased both insides in the United States and around the world so that we can reduce pressure," Granholm noted.
This article is owned by Latin Post.
Written by: Joshua Summers
WATCH: Biden Announces Plans To Tap Into Oil Reserves To Combat Rising Prices - From NBC News
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