05.04.2022, 12:49
CNN: U.S. Could Be in Trouble As Oil Reserves Fall
Source: OREANDA-NEWS
OREANDA-NEWS. If the United States fails to replenish the previously unpacked strategic oil reserves, then problems may begin in the country. Bob McNally, president of Rapidan Energy, told CNN.
According to McNally, US President Joe Biden's recent decision to use the country's strategic oil reserves will not help drive down gasoline prices. In addition, it will cause certain "problems" if the US cannot replenish its stocks.
He added that the US would be even more vulnerable if stocks were not replenished if prices skyrocketed, as is always the case with disruptions caused by geopolitical reasons. Therefore, as long as Russia's special operation in Ukraine continues, fuel prices will rise, and the release of strategic reserves will not change the situation and will not contain prices.
On March 31, President Biden decided on the "largest ever" release of oil from the strategic reserves of the United States. Washington will bring to market an average of an additional 1 million barrels per day per day over the next six months.
“The scale of this release is unprecedented: the world has never seen the release of oil reserves at such a rate of 1 million per day over such a period of time. This record release will provide a historic supply that will serve as a bridge until the end of the year, when domestic production [of oil] will increase, ”the message says.
In early March, Biden said that the United States was ready for new commodity interventions to stabilize world oil prices.
According to McNally, US President Joe Biden's recent decision to use the country's strategic oil reserves will not help drive down gasoline prices. In addition, it will cause certain "problems" if the US cannot replenish its stocks.
He added that the US would be even more vulnerable if stocks were not replenished if prices skyrocketed, as is always the case with disruptions caused by geopolitical reasons. Therefore, as long as Russia's special operation in Ukraine continues, fuel prices will rise, and the release of strategic reserves will not change the situation and will not contain prices.
On March 31, President Biden decided on the "largest ever" release of oil from the strategic reserves of the United States. Washington will bring to market an average of an additional 1 million barrels per day per day over the next six months.
“The scale of this release is unprecedented: the world has never seen the release of oil reserves at such a rate of 1 million per day over such a period of time. This record release will provide a historic supply that will serve as a bridge until the end of the year, when domestic production [of oil] will increase, ”the message says.
In early March, Biden said that the United States was ready for new commodity interventions to stabilize world oil prices.
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