Today’s Telegraph leads with US President, Joe Biden’s decision to release 50 million barrels of oil from US reserves in a bid to lower prices at petrol pumps.
Supply shortages have led to gasoline prices doubling over the past year to an average of $3.40 per gallon, coinciding with multi-year inflation readings.
Whilst Americans will appreciate the President’s efforts to lower prices, market commentators are questioning the impact this will have given the United States consumes 20 million barrels of oil every single day.
The Telegraph – 27th November 2021
“The US consumes 20m barrels of oil a day. Biden’s release of 50m barrels from US oil reserves is pointless at best, and should he proceed with further draws, reckless at worst. Biden will fail to force the hand of OPEC, whom ultimately dictate prices. His provocation is more likely to result in OPEC holding firm on production”.1
Marc Kimsey, Frederick & Oliver.
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By Marc Kimsey