Biden battles high gas prices, eyes strategic reserves for relief

Gas prices in the USA are especially important for incumbent President Joe Biden, who will be vying for re-election against Donald Trump this fall. The White House is so concerned about rising gasoline prices that it is prepared to deplete strategic oil reserves if necessary.

Fuel prices are "still too high for many Americans" and must be "cut down a little bit further," said Joe Biden’s energy and investment advisor Amos Hochstein to the British newspaper "Financial Times." This concern is closely tied to the upcoming presidential elections in the USA, scheduled for November 5.

Hochstein also announced that the United States will "continue to purchase (the raw material) next year until we think that the SPR has the volume that it needs again to serve its original purpose of energy security"

American reserves of "black gold" are the largest in the world. They were created in the 1970s after the oil crisis. However, the reserves are at their lowest level in 40 years, partly due to the war in Ukraine. But there are other factors as well.

This year, the US Department of Energy bought approximately 730,000 barrels of crude oil per month for strategic reserves after selling 180 million barrels since Russia invaded Ukraine in February 2022, when gas prices soared to over $5 per gallon.

Analysts note that the rise in gas prices is also influenced by Israel’s conflict with Palestinian Hamas in the Gaza Strip and increased tensions in the Red Sea, following attacks on tankers by Iran-backed Houthi rebels from Yemen.

As reported on money.pl, half of the world’s container ship fleet, which regularly passes through the critically important Suez Canal shipping lane, is currently bypassing this route. Ships have been redirected around the Cape of Good Hope, lengthening voyages and increasing oil consumption.