At present, Saudi Arabia relations with the United States have fallen to a new low. Biden hopes Saudi Arabia will increase oil production to curb soaring prices, but the Saudi leader has consistently rejected Biden's calls. Recently, Macron revealed the news that "Saudi Arabia will not increase production", causing a sensation in international oil prices.
In this regard, China and the United States take completely different approaches.
Although Biden has been revealing that he will go to Saudi Arabia to "cut oil prices" and wrote letters accusing oil giants of "selling too expensively," in fact, Biden is making "two preparations" for the worst case scenario: If oil prices rise When 200html reaches US$5 per barrel, what impact will it have on the economy? Currently, the United States is conducting simulations on this matter.
According to foreign media reports, currently, the United States’ oil reserves have dropped to their lowest level since 2014. Crude oil storage systems need to maintain a minimum crude oil capacity of 20 million to 22 million barrels. At present, as long as the price drops by another 1 million barrels, it will fall to the lowest limit level. The situation is not optimistic.
In the past two weeks, the United States has withdrawn 13.7 million barrels from the storage system. According to expert calculations, the U.S. strategic oil reserves may only be enough for 27 days of supply given the current booming demand.
Therefore, Biden has to artificially suppress oil prices in a short period of time. If the oil price rises to 200 US dollars a barrel, the US oil price will reach 10 US dollars / gallons or more (about 17.8 yuan / liters). This will bring about an unimaginable inflationary impact.
Faced with possible instability in international oil prices, the United States is simulating changes in oil prices for its own benefit. China has made different choices in order to reduce the burden on consumers and reduce economic operating costs.
6htmlOn May 29html, China announced that if the international oil price exceeds the upper limit of 130 US dollars per barrel, domestic refined oil prices will no longer increase in the short term (within two months)!
Text | Wu Kaibin Title | Zeng Yi Review | Li Zepu
