The United States is facing the most serious inflation since 1981. Poor economic performance and record-breaking oil prices have caused Biden 's average approval rating to fall to a record low.
According to data from the U.S. polling data aggregation website RealClearPolitics on Wednesday, Biden's average approval rating in the United States is 38.8%, and 56.9% of Americans are dissatisfied with his performance, while former U.S. President Trump is president. The approval rate during the same period was 43.3%. The American people are dissatisfied with the Biden administration on a series of issues ranging from the economy, violent crime, and immigration, the first of which is oil and gas prices.
It’s not just the people who have lost confidence in this government, the Biden administration itself doesn’t seem to be very confident either.
On Wednesday, June 29th, Eastern Time, according to media reports, the Biden administration has begun to analyze and simulate what kind of damage will be caused to the economy when the international oil price reaches US$200 per barrel, as the media commented:
Economic officials are not studying and managing an economy in natural development, moving from recovery to a stable growth period, but are analyzing and simulating worst-case scenarios, such as what an impact on the economy if oil prices reach $200 per barrel might mean. What.
Biden has actually made a lot of efforts to curb oil prices, but they have rarely been effective. From releasing the Strategic Petroleum Reserve (SPR), imitating the UK in imposing windfall profits taxes on the oil and gas industry, lowering their heads and preparing to visit the Middle East to meet with the Saudi Crown Prince, to writing letters to "threaten" major oil companies to take responsibility and cooperate with government actions to reduce Oil prices, etc. If oil prices continue to rise, the situation may get worse.
The belated EIA data on Wednesday showed that with the continuous release of strategic oil reserves, U.S. crude oil inventories fell by 2.76 million barrels; crude oil inventories in Cushing continued their downward trend for several weeks, falling by 782,000 barrels. To a new low since October 2014; gasoline inventories unexpectedly increased by 2.65 million barrels; distillate inventories unexpectedly increased by 2.56 million barrels; refinery capacity utilization increased by 1%.
The U.S. Department of Energy said on Monday that it released 6.9 million barrels of crude oil (about 985,000 barrels per day) from its Strategic Petroleum Reserve last week, which means that the current U.S. Strategic Petroleum Reserve fell below 500 million for the first time since 1986. Barrel mark. The International Energy Agency earlier warned that "global oil supplies may struggle to keep pace with demand next year."
The SPR may be the final buffer to curb oil prices and global inflation later this year and in 2023, so what follows? Perhaps, what would happen without the support of strategic oil reserves?
As Bloomberg chief energy analyst Javier Blas pointed out, the U.S. government has released 13.7 million barrels from the SPR over the past two weeks, however, commercial oil inventories have still fallen by 3 million barrels during this period. In addition, an earlier article by Wall Street News also pointed out that since OPEC joined forces with its allies to coordinate production cuts in May 2020, OPEC+'s cumulative production has been 562 million barrels less than the level stipulated in the agreement, and Saudi Arabia and the United Arab Emirates' oil production capacity is close to the limit. .
The cancellation of additional supply means that commercial inventories are quickly depleted, thus putting upward pressure on oil prices. In other words, Biden's efforts to stabilize oil prices will eventually turn into "empty water from a bamboo basket."
Return to The news that the White House is analyzing and studying the $200 oil price scenario seems to be "reasonable".
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