United States

Biden to release 50 mn oil barrels in attempt to lower gas prices

18:46, 23 November 2021
Biden to release 50 mn oil barrels in attempt to lower gas prices Photo: David Lienemann/wikipedia.com

The President of the United States Joe Biden said that he decided to release 50 million barrels of oil to lower energy costs.

The agreement was reached after talks with other countries which include China.

“I have been working with countries across the world to address the lack of supply. As a result of our diplomatic efforts, this step will be taken in parallel with other major energy consuming nations including China, India, Japan, Republic of Korea and the United Kingdom,” Biden said in a statement.

The cause is that the prices have kept rising for a while, more than doubling in comparison to the previous year.

The announcement did not have any large impact on the price for a benchmark barrel of US crude until now.

The US is still undergoing serious inflation following the social aid which was given to people and citizens during the pandemic.

This has led to US markets indexes hitting record after record with many investment firms comparing the danger of the situation to the same one that was present during the bubble in the 1990s.

Republicans blame democrats for letting the situation reach such a level as the consumer price index soared 6,2% from last year.

This is the biggest rapid jump since 1990.

The inflation rate is currently ranked as the highest since 31 years.

Trump blamed Biden for incorrect policy saying that the reserves which will be released are meant only for emergency situations.

“Those reserves are meant to be used for serious emergencies, like war, and nothing else,” he said in a statement.

Earlier, the White House confirmed the guesses and long-time discussions on the subject of whether US President Joe Biden will take part in the next presidential race which will take place in 2024.