Oil prices rise by $5 per barrel despite supply release
Oil prices rose by USD 5 per USD on Wednesday for the first time since 2014, after the United States and other major governments agreed to release supplies from strategic reserves, easing market concerns over Russia’s attack on Ukraine. USD increased. The barrel went up. Failed to
Benchmark US crude rose $5.24 a barrel to $108.60 in electronic trading on the New York Mercantile Exchange. International benchmark Brent crude rose by USD 5.43 to USD 110.40 a barrel in London.
31 members of the International Energy Agency, a club of major oil consumers, agreed on Tuesday to release 60 million barrels of crude from reserves in hopes of calming markets.
It failed to address concerns about supply disruptions from Russia, the second largest exporter after Saudi Arabia.
“Markets rejected the notion that the 60 million barrels of strategic reserves issued would be exposed to Russian supplies,” Tan Boon Heng of Mizuho Bank said in a report. “Russia pumps out more than this in just six days.”
Biden announces release of 30 million barrels of oil to maintain global oil prices
US President Joe Biden announced that his administration has worked with 30 other countries to release millions of barrels of oil from US strategic reserves to keep global oil prices under control amid the Russian invasion of Ukraine. In his first State of the Union address on Tuesday, Biden said his administration was taking “strong action” to ensure that the pain of US sanctions is targeted at Russia’s economy.
“To all Americans, I will be honest with you, as I have always promised. A Russian dictator, an attack on a foreign country, is the cost of the world,” Biden said.
“Tonight, I can announce that the United States has worked with 30 other countries to release 60 million barrels of oil from reserves around the world. The US will lead that effort, 30 from our own strategic petroleum reserves. .Million barrels. And we are ready to do more if necessary, integrated with our partners,” Biden said.
“These steps will help bring down gas prices here at home. And I know the news about what is happening may sound shocking. But I want you to know that we are going to be fine,” he said, assuring his countrymen that he would ensure that inflation remains under control.
Biden said he was the only president ever to cut more than a trillion dollars in a single year.
“Reducing our costs also means demanding more competition. I am a capitalist, but capitalism without competition is not capitalism. It is exploitation and it raises prices.”
“When corporations don’t need to compete, their profits go up, your prices go up, and small businesses and family farmers and ranchers go down. We see this happen within America and across the ocean. crosses over. is out.” A freight carrier is carrying goods.
During the pandemic, these foreign-owned companies hiked prices by up to 1,000% and made record profits,” he said.
(with inputs from agencies)
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