Joe Biden has allowed FIVE MILLION barrels of oil from US national supply to be shipped abroad after claiming they'd be released to help lower soaring gas prices | Brave Business
Joe Biden has allowed FIVE MILLION barrels of oil from US national supply to be shipped abroad after claiming they'd be released to help lower soaring gas prices
In an effort to ameliorate Americans' suffering at the gas pump, Joe Biden claimed that releasing five million barrels from the Strategic Oil Reserve would assist.
As it was discovered that between a fifth and a sixth of the reserve oil he boasted about releasing to enhance supplies really found its way offshore to Europe and Asia in June, the president was accused of pulling a cunning sleight of hand.
Beginning in April, Biden approved the flow of one million barrels per day. However, despite his efforts, the national average for a gallon of petrol as of Tuesday was $4.74, which is still significantly more than the $2.28 average from just before he took office.
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In April, Biden announced the release of the oil barrels, saying that it would "put more than one million barrels per day on the market over the next six months and help address supply disruptions caused by Putin's further invasion of Ukraine and the Price Hike that Americans are facing at the pump."A closer examination of the news announcement reveals that the oil released from the strategic reserve was always intended for the highest bidder, even if they were located abroad, therefore it appears to have had minimal impact.
Although a typical American who heard Biden's declaration in passing would have likely believed that the increase in supply would have been bound for local refineries, lowering US prices, that is because rigorous international restrictions govern the sale and supply of oil.
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According to Matt Smith, chief oil analyst at Kpler, "Crude and fuel prices would probably be higher if (the SPR releases) hadn't happened, but at the same time, it isn't really having the effect that was predicted."Government representatives are still standing up for Biden and arguing that his release would have resulted in even higher domestic gas costs.
In a statement, Biden said he had approved the largest-ever release of oil from the Strategic Petroleum Reserves (SPR), putting an extra million barrels of oil on the market every day for the next six months, on average.
President Biden is 'demonstrating his unwavering commitment to doing everything in his power to ease the pain American families are facing today at the pump as a result of Putin's Price Hike,' the White House said in a statement. 'President Biden is also continuing to take strong action - right now and without delay - to achieve lasting American energy independence.'
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Despite political analysts' warnings that the term "Putin's Price Hike" is not resonating with Americans, Biden has frequently used it to shift the blame for skyrocketing inflation.They claim he should feel more sympathy for the hardships Americans are going through economically rather than just trying to divert attention.
In one-fifth of the country, the price of gasoline and diesel is above $5 per gallon, while U.S. oil futures are above $105 a barrel.
On Saturday, Biden reiterated his plea for fuel providers to lower their rates, garnering criticism from Jeff Bezos, the founder of Amazon.
Bezos claimed that Biden's remarks revealed an obvious lack of understanding of the American free-market system, in which supply and demand always set pricing for things.
However, a sizable portion of the flow is going abroad even though it is draining the SPR, which last month dropped to its lowest level since 1986.
According to U.S. Customs data seen by Reuters, the fourth-largest U.S. oil refiner, Phillips 66, moved around 470,000 barrels of sour crude from the Big Hill SPR storage site in Texas to Trieste, Italy.
A pipeline that transports oil to refineries in central Europe is located in Trieste.
The data showed that the French oil giant TotalEnergies' subsidiary Atlantic Trading & Marketing (ATMI) exported two cargoes totaling 560,000 barrels each.
A request for comment from DailyMail.com has not received a response from Phillips 66. A request for response from ATMI was not answered.
According to a source in the sector, cargoes of SPR crude were also en route to the Netherlands and an Indian Reliance refinery.
Another source claimed there was a third shipment going to China.
According to a shipping source, at least one cargo of oil from the West Hackberry SPR site in Louisiana was planned for export in July.
Officials from the United States have defended their conduct by claiming that oil prices might have increased if the SPR had not been used.
The most recent exports come after three ships transported SPR crude to Europe in April, replacing Russian crude supplies.
As refineries operate close to capacity, U.S. crude stockpiles are at their lowest level since 2004.
The U.S. Gulf coast's refineries were operating at 97.9 percent capacity, the highest level in three and a half years.
After the president tweeted that "businesses running gas stations" should just "bring down the price you are charging at the pump," American energy producers retaliated against Biden on Monday.
On Saturday, Biden tweeted from his official White House account: "This is a time of war and great peril, and my message to the firms running gas stations and setting rates at the pump is straightforward.
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Reduce the price you're asking for gas so that it reflects the price you're paying for the goods. And now, do it.
Working on it, Mr. President, the U.S. Oil & Gas Association retorted.
Have a happy 4th of July in the meanwhile, and please make sure the WH intern who wrote this tweet enrols in Econ 101 for the upcoming fall semester.
Biden's comments, according to Bezos, "either straight forward misinformation or a poor misunderstanding of basic market dynamics,"
'Ouch. The White House should stop making claims like this about inflation, the US billionaire tweeted on Saturday.
Before the November midterm elections, rising gas prices at the pump have come to represent broader price increases in the US and are eroding Vice President Joe Biden's popularity.
Biden has frequently criticised oil firms, claiming that they primarily consider profits rather than the welfare of the typical consumer.
In response, the firms claim they have increased production in an effort to control prices, although these are determined on the global market and are subject to dynamics outside the control of US oil majors.
John Kirby, the National Security Council Coordinator for Strategic Communications, said his boss would take "grave objection" to being accused of misleading the American people in the Biden administration's response to Bezos on Sunday.
The American people are certainly experiencing agony at the gas pump; the current price is, what, $5 per gallon? And the president is making tremendous efforts on all fronts to try and reduce that cost,' Kirby told Fox News.
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He emphasised Biden's efforts to cut gas prices in recent months, all of which had been insufficient to stop the increase that had only started to decline in the last three weeks.The actions cited by Kirby include working with G7 leaders to set a price cap on Russian oil, releasing record amounts of oil from the US Strategic Petroleum Reserve, and urging Congress to approve a three-month summer gas tax vacation.
He asserted that if everyone worked together, we could lower the cost at least by around a dollar per gallon.
Biden "knows the impact high gas prices have on the American household," according to Kirby.
When questioned explicitly about Bezos' claim of "misdirection," Kirby responded, "Anyone who knows President Biden knows he's plainspoken."
He expresses himself clearly and in language that everybody can comprehend, according to Kirby.
Consequently, we certainly object strongly to the notion that this is in some way a form of misdirection.
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