Oil prices rose above $82 a barrel on Tuesday morning after the Biden administration announced the U.S. and other nations would release tens of millions of barrels of oil from reserves in a ploy to lower prices.
The price of Brent Sweet Crude, the global benchmark, rose by more than three percent following the announcement that the U.S. would be releasing 50 million barrels from the Strategic Petroleum Reserves.
The Biden administration hopes the reserve release will tamp down the price of gasoline and combat inflation, which has become a major economic and political headache for the administration.
The Department of Energy will make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve to lower gas and oil prices for Americans.
Oil industry experts say the reserve release will likely not put significant downward pressure on prices, doing little to relieve price pressures created by underinvestment in U.S. production in the face of political pressure from climate activists.
Some oil traders say the release is largely symbolic because the U.S. had already planned on selling oil from the reserves as part of deficit reduction authorized by Congress in legislation earlier this year.
At least one member of the Biden administration have expressed doubts about the effectiveness of the release.
https://www.breitbart.com/economy/2021/11/23/reserve-release-backfires/
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