Joe Biden, president of the United States, issued instructions to release 50 million barrels of oil from the country’s reserves, with the purpose of mitigating the increase in fuel prices.
Biden is working in coordination with a group of highly oil consuming countries such as China, India, Japan, the United Kingdom and the Republic of Korea, which require a lot of energy for the economies of their countries to operate.
The joint initiative was conceived and presented by the US and its intention is to bring oil prices down “mechanically“. US stocks are the world’s largest emergency supply and the release will begin around mid-December.
Oil prices intervention
According to the statements issued by a senior representative of the executive “it is possible that new interventions will be produced to stabilize the market, in response to a pandemic unique in the century.”
Joe Biden is willing to take other actions and exercise all his authority to maintain the adequate supply of oil so that the country functions properly in the midst of the pandemic, in addition to leading and managing measures with the other leaders and heads of countries that also register very high energy consumption levels.
On the other hand, some consumers consider that the drop in the price of oil, 10 % in recent days, has not had a direct impact on the cost of gasoline, which continues to increase for end consumers.