US strategic oil reserves reach historic low as Biden taps further
2 Min Read
The US makes the unwise decision to continue tapping into its oil reserves in hopes of decreasing oil prices further.
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Oil Reserves in the United States (EPA)
As Washington tries to control the nation's gas prices, US President Joe Biden's decisions this year have led to a serious depletion of the US Strategic Petroleum Reserve.
According to statistics released by the US Department of Energy, the US emergency oil reserves this week included just 416.4 million barrels, which is the lowest amount since 1984.
In response to the ongoing war in Ukraine, and consequently the anti-Russia sanctions imposed by the US, Russian energy exports became limited thus creating a worldwide shortage.
As a result, oil prices in the US increased, proving the counter-productiveness of anti-Russia sanctions.
Subsequently, Biden ordered the withdrawal of 180 million barrels of oil from the US strategic reserve over the course of six months in an effort to bring down the cost of fuel. The White House further noted, later, that an additional 10 million barrels will be released in November.
On Wednesday, the OPEC+ states voted on cutting their production of oil and agreed to reduce their oil production by 2 million barrels a day in light of the world's surging energy crisis and the G7 agenda to introduce a price cap on Russian crude oil.
The US is concerned that OPEC's probable decision to reduce oil production will pose serious problems for the country and may even be interpreted as a hostile act, according to a US Treasury report.
Following the vote at OPEC+ that ratified the slashing of 2 million barrels per day in oil production, the US decided to tap further into their oil reserves. This decision will likely drive oil prices in the US even higher.
According to Fox Business, the average price of petrol in the US is currently $3.86 a gallon, which is better than the $5.01 per gallon observed in June but still 29% pricier than it was a year ago.
Read more: US considering 'response options' for OPEC+ oil cut, some against KSA
