Biden Is Growing Increasingly Desperate To Curb Gasoline Prices

biden_is_growing_increasingly_desperate_to_curb_gasoline_prices.jpg

Entornointeligente.com / Home Oil Prices Rig Count Energy Energy-General Oil Prices Crude Oil Heating Oil Gas Prices Natural Gas Coal Company News Interviews Alternative Energy Nuclear Power Solar Energy Hydroelectric Renewable Energy Geothermal Energy Wind Power Fuel Cells Tidal Energy Biofuels Environment Global Warming Oil Spills Geopolitics Africa Asia Europe Indonesia International Middle East North America South America Video Breaking News Premium Articles Community Trade Now My Account Latest Discussions Energy General Oil Stocks & Prices Other Energy Topics Trade Now Get Exclusive Intel All Prices OPEC Blends Canadian Blends U.S. Blends WTI Crude • 10 mins 70.54 +0.59 +0.84% Brent Crude • 24 mins 73.44 +0.72 +0.99% Natural Gas • 10 mins 4.890 +0.036 +0.74% Heating Oil • 10 mins 2.160 +0.008 +0.37% Gasoline • 1 hour 2.077 +0.048 +2.35% Louisiana Light • 8 days 77.14 +0.63 +0.82% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Louisiana Light • 8 days 77.14 +0.63 +0.82% Bonny Light • 4 days 72.05 -8.69 -10.76% Opec Basket • 4 days 76.09 -5.22 -6.42% Mars US • 15 mins 66.45 +1.80 +2.78% Gasoline • 1 hour 2.077 +0.048 +2.35% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Marine • 4 days 77.31 -4.02 -4.94% Murban • 4 days 79.47 -3.73 -4.48% Iran Heavy • 4 days 68.51 -8.39 -10.91% Basra Light • 5 days 83.15 -0.03 -0.04% Saharan Blend • 4 days 73.05 -8.66 -10.60% Bonny Light • 4 days 72.05 -8.69 -10.76% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Bonny Light • 4 days 72.05 -8.69 -10.76% Girassol • 4 days 72.89 -8.46 -10.40% Opec Basket • 4 days 76.09 -5.22 -6.42% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Canadian Crude Index • 4 days 49.37 -10.16 -17.07% Western Canadian Select • 30 mins 45.15 -11.24 -19.93% Canadian Condensate • 16 hours 67.15 -10.24 -13.23% Premium Synthetic • 16 hours 68.55 -10.24 -13.00% Sweet Crude • 30 mins 56.90 -12.19 -17.64% Peace Sour • 30 mins 54.65 -14.24 -20.67% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Peace Sour • 30 mins 54.65 -14.24 -20.67% Light Sour Blend • 30 mins 61.15 -11.24 -15.53% Syncrude Sweet Premium • 30 mins 57.15 -15.24 -21.05% Central Alberta • 30 mins 54.65 -14.74 -21.24% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Louisiana Light • 8 days 77.14 +0.63 +0.82% Domestic Swt. @ Cushing • 17 hours 66.50 +1.75 +2.70% Giddings • 17 hours 60.25 +1.75 +2.99% ANS West Coast • 7 days 82.52 +2.11 +2.62% West Texas Sour • 17 hours 63.90 -8.44 -11.67% Eagle Ford • 17 hours 67.85 -8.44 -11.06% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Eagle Ford • 17 hours 67.85 -8.44 -11.06% Oklahoma Sweet • 17 hours 66.50 +1.75 +2.70% Kansas Common • 4 days 58.50 -10.25 -14.91% Buena Vista • 4 days 72.89 -10.24 -12.32% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

1D 1M 3M 1Y All Charts Products Discussion Headlines 45 mins Gazprom Reports Record-Breaking Profits Amid Surging Gas Prices 5 hours Saudi Aramco: Oil Markets Overreacted To Omicron Fears 6 hours Russia Warns The U.S. Not To Interfere With Nord Stream 2 7 hours Is The U.S. Government About To Make Oil Drilling More Expensive? 8 hours OPEC+ Delays Meetings Following Surprise Oil Price Crash 3 days Industrial Metals Rise As China’s Property Market Bounces Back 3 days DIDI Plunges After China Asks The Company To Delist From The NYSE 3 days Brazil’s Oil Major Plans To Invest $68 Billion In Boosting Production 5 days UN Nuclear Agency Fails To Reach An Agreement With Iran 5 days Steel Prices Remain Elevated As Production Slides 5 days Russia’s Oil Reserves Are Becoming Increasingly Hard To Recover 5 days U.S. Gasoline Prices Barely Budge After SPR Release Announcement 5 days OPEC+ Reacts To Biden, May Not Raise Oil Production In December 5 days Barclays Lifts Brent Oil Price Forecast To $80 In 2022 6 days Keystone XL Developer Seeks $15 Billion In Compensation 6 days Crude Oil Inventory Build Follows Announcement Of SPR Release 6 days Kazakh-Chinese Nuclear Fuel Plant Kicks Off Operations 6 days European Natural Gas Prices Rise As Gazprom May Halt Gas Flows To Moldova 6 days Florida Looks To Directly Lower Gasoline Prices With Tax Relief 6 days Aluminum Inventories Have Fallen To Critical Levels 6 days Azerbaijan And Iran Look To Mend Energy Relations 6 days India Set To Tap Only 5 Million Barrels From Crude Reserves 7 days Energy Crisis Claims Its Biggest Victim In The UK Yet 7 days Saudi Aramco’s $15 Billion Oil Deal With India’s Largest Company Fails 7 days Halting Cambo Oilfield Exposes The UK To Energy Shortages 7 days British Gas Swoops In To Save Stranded Customers From Energy Crisis 7 days Saudi Retains Top Spot among China Oil Suppliers 7 days Japan Considers Releasing Oil From Reserve 10 days Asian Buyers Can’t Get Enough Of U.S. Sweet Crude Oil 10 days U.S. Gasoline Prices Set For Decline 10 days OPEC+ Pumped Less Oil Than Agreed In October 11 days U.S. To Discuss Energy Transition With Mexico’s President 11 days UK’s National Grid Expects Windfall Profits From High Power Prices 11 days Crypto Miners Are Worsening Kazakhstan’s Energy Crisis 11 days Tensions Between Armenia And Azerbaijan Boil Over After Border Incidents 11 days U.S. Asks Big Oil Consuming Nations To Release Reserves 11 days Biden Calls On FTC To Investigate Oil Companies And High Gas Prices 12 days Largest Offshore Drilling Auction In U.S. History Kicks Off With $192M In Bids 12 days India Shuts Coal Power Plants As Delhi Air Pollution Worsens 12 days Soaring Energy Prices Drive UK Inflation To 10-Year High 3 minutes Looming European Gas Crisis in Winter and North African Factor – a must read by Cyril Widdershoven 7 minutes “Biden Targets Another US Pipeline For Shutdown After ‘Begging’ Saudis For More Oil” – Zero Hedge Monday Nov 8th 12 minutes “UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System” by Whitney Webb 5 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry 19 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa 23 hours GREEN NEW DEAL = BLIZZARD OF LIES 5 days Building A $2 Billion Subsea Solar Power Cable From Chile To China 3 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can’t break-even. 1 hour CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite 3 days Modest drop in oil price: SPRs vs US crude inventory build 3 days 2019 – Attack on Saudi Oil Facilities. 7 hours NordStream2 3 days Monday 9/13 – “High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year” by Irina Slav 5 days Ukrainian Maidan after 8 years 5 days Peak oil – demand vs production 6 days “How the CO2 shortage is impacting the food and drink sector” – Specialty Food Magazine Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Breaking News: Gazprom Reports Record-Breaking Profits Amid Surging Gas Prices

Find us on:

Asian LNG Buyers Are Preparing For A Harsh Winter After last year’s cold spell,…

U.S. Residential Natural Gas Bills To Jump 30% This Winter A total of 48 percent…

The True Cost Of The Energy Crisis Is Yet To Be Seen The current energy crunch is…

Home Energy Gas Prices Robert Rapier

More Info

Share Facebook Twitter Linkedin Reddit Premium Content Biden Is Growing Increasingly Desperate To Curb Gasoline Prices By Robert Rapier – Nov 29, 2021, 5:00 PM CST U.S. President Joe Biden is taking a lot of flack for the rise in gasoline prices. In the short term, there is not much the President can do to put a cap on prices at the pump. In the long term, however, the President can eye policies that will impact supply, and ultimately oil and gas prices. Join Our Community Last week a friend from Uganda told me that gasoline prices have risen by 50% there. I asked him who the people blame. “Our President.” So, there you have it. Uganda’s President is behind the rise in gasoline prices. Not really. But it goes to show that it is natural for any country to blame their leaders for increases in gasoline prices.

As I have argued previously, there are few handles the U.S. President has that can impact gasoline prices in the short term. In the longer term, lots of policies can impact supplies, and ultimately oil and gasoline prices. A curtailment of drilling and denial of the Keystone XL pipeline permit are two such policies that can negatively impact future production and prices.

Short Term Policies

But in the short term, the President primarily has three options for impacting gasoline prices.

One is to declare war on a major oil-producing country. After Iraq invaded Kuwait in 1990, oil prices started to rise. They shot up even higher when the U.S. announced it would lead a coalition to remove Iraq from Kuwait. The result was the 1990 oil price shock.

The oil price spike was short-lived, because the military conflict didn’t last long. But any military action that threatens to immediately impact a major oil supplier can rapidly change the price of oil, and subsequently gasoline.

Related: The Electric Vehicle Charging Market Could Be Worth As Much As $1.6 Trillion

The second way the President can impact gasoline prices it to push through a change in gasoline taxes. But this is unlikely. The federal gas tax is 18.4 cents a gallon and has not increased since 1993. Increasing it would be politically difficult, so this is a possible mechanism for increasing gasoline prices, but it isn’t a likely mechanism.

Unless the gas tax was reduced, the previous two examples would typically result in increases in gasoline prices. That is the one the President announced this week: A release of crude oil from the Strategic Petroleum Reserve (SPR).

About the SPR

As a refresher, with 727 million barrels of authorized storage capacity, the SPR is the world’s largest supply of emergency crude oil. The federally-owned oil stocks are stored in huge underground salt caverns along the coastline of the Gulf of Mexico. Decisions to withdraw crude oil from the SPR are made by the President under the authorities of the Energy Policy and Conservation Act. In the event of an energy emergency, oil is released from the SPR by competitive sale.

The purpose of the SPR is to be there in case U.S. crude oil imports are cut off, and we need the oil. The funny thing about “emergency” is that the SPR has regularly been used for political purposes. In this context, high gasolines prices are an emergency, primarily due to the political consequences. And politicians have used rising prices again and again as pretext for drawing from the SPR.

In any case, a release of SPR crude oil can have a short-term impact on gasoline prices, as long as the primary driver of higher prices is a shortage of crude oil. That is in fact the situation we have today.

Related: Green Fintech Is A New Trend Investors Can’t Ignore

As I described in recent articles ( for example ), U.S. oil production hasn’t recovered from the 3 million barrel per day (BPD) plunge that took place in the spring of 2020. But, demand has recovered, so we find ourselves short of oil. That has driven prices much higher.

So it’s certainly possible in the short term that this announced release of 50 million barrels will help curb oil prices while U.S. producers continue to ramp up. The price of oil did dip 1.9% to a session low of $75.30 per barrel following the announcement, but ultimately recovered and moved into positive territory.

What happens with prices over the next few months will ultimately depend on how much oil is released and how quickly U.S. producers continue to ramp up. And, bear in mind that these releases have a downside. Unless the oil is replenished, they increase our risks of having insufficient supplies in the event of a true emergency.

By Robert Rapier

More Top Reads From Oilprice.com:

Oil Prices Bounce Back After ‘Black Friday’ Collapse Germany Urges Congress Not To Sanction Nord Stream 2 Mandate vs. Choice: The Debate Is Heating Up Over Electric Vehicle Policy Download The Free Oilprice App Today
LINK ORIGINAL: Oilprice

Entornointeligente.com

Smart Reputation