For some time now, the price of oil has been soaring to unprecedented heights due to high demand, and consumers around the world are suffering from the high cost of energy. In the USA, too, prices for oil and gasoline are at an all-time high. Now the U.S. government apparently wants to tap the nation’s oil reserves in order to depress oil prices and thus boost economic growth.
Emergency releases of oil reserves planned in several consuming countries
Around the world, the economy and above all consumers are suffering from rising oil prices. Increased demand and too low production figures on the part of Opec+ have set a price spiral in motion, from which the USA and other consuming countries are now looking for a way out.
The Opec+ oil association has been gradually expanding production since the summer. Nevertheless, crude oil prices reached multi-year highs in October, to which Opec+ has so far not responded with a stronger expansion of production. Demands to this effect have so far always been rejected not only by Opec+ but also by other important oil producers such as Russia.
After China has already announced the tapping of national oil reserves, the U.S. government is now also considering an emergency release of oil reserves in the fight against high oil prices, according to information from the Bloomberg news agency.
According to the report, other major consuming countries, including India, Japan and South Korea, want to join the U.S. strategy, so concentrated action by several major consuming countries could depress oil prices while boosting the economy.
US government also under pressure nationally
At around 95 cents for a liter of regular gasoline, fuel prices in the U.S. are comparatively low by European standards, but U.S. residents are traditionally accustomed to their low fuel prices and are increasingly finding the current price trend an unacceptable nuisance.
For many Americans, oil prices are seen as the reason for rising inflation. In addition, many blame the government for high fuel prices, so that U.S. President Joe Biden is also coming under increasing national pressure to act.
There are also critics
Although many Americans would certainly welcome the possibility of depressing oil prices by tapping into the nation’s reserves, there are also many critics in the country.
They assume that such a measure would only achieve a moderate price reduction and that only for a short time. However, the main argument is the purpose of national oil reserves in general.
According to experts, the U.S. oil supply is enough to meet the country’s energy needs for about a month. Actually, the reserves are also intended for real emergencies. Thus, oil reserves should only be used to maintain energy supplies after natural disasters, in the event of war, or if the country is completely cut off from oil supplies.