price reduction
Commenting on this, Keith Boyfield, a fellow at the Institute of Economic Affairs in London, said: "It is clear that the aim of the decision is to reduce the price of Brent crude. It’s a long-term commitment, so the effect will be long, just like it did in the 1970s".
Boyfield added, in statements to"Sky News Arabia": "The focus will be on American shale oil, but the main problem with it is that it takes at least a year to raise production significantly, drillers don’t start making profits until they see a return of $50 a barrel. Therefore, current prices should stimulate investment in shale oil while moving to address bottlenecks".
He pointed out that "The sharp rise in oil prices will act as a catalyst for a more efficient use of hydrocarbons. This time we will see a bigger shift to electric propulsion As I speak my local council here in Westminster, central London, is installing a wave of new electric charging outlets for cars, it will become a trend".
Biden’s popularity
The Iraqi analyst, Hashem Abdul Karim, said: Biden began withdrawing from the strategic oil stored in the caves; With the aim of lowering fuel prices and thus reducing the anger of Americans and maintaining a majority in both houses of Congress during the elections scheduled for the eighth of next November.
He pointed out that Biden’s popularity has recently declined to high rates, and these fears among Democrats are reinforced by the victory of Republican candidates in the 2021 elections in New Jersey, Virginia and New York.
He explained that the second reason is the increase in pressure on Russia, as Biden stressed that Washington will not let Putin use his energy resources. "a weapon"He stressed that Biden’s decision came following Russian President Vladimir Putin demanded that foreign buyers pay for Russian gas in rubles, or else Moscow would cut off supplies to them.
He pointed out that the third reason is Iran’s evasion in the Vienna negotiations, as Tehran was seen as an alternative to Russian fuel, which was confirmed by the new US sanctions on suppliers of Iran’s ballistic missile program.
In a research note, commodity analysts at Bank "Goldman Sachs"The release of US reserves will help the oil market rebalance in 2022, but it will not solve its structural deficit.
The Goldman Sachs report said: This step is capable of restoring balance to oil prices, in a world without the necessary reserves for emergency times.
According to the newspaper "Financial Times" American, the "The new withdrawal is the largest ever announced, and will last 6 months, draining nearly a third of the United States’ strategic petroleum reserves, and the decline will raise the reserves to their lowest level since 1984.".
According to the newspaper "Financial Times, the "The new withdrawal is the largest ever announced, and will last 6 months, draining nearly a third of the United States’ strategic petroleum reserves and the decline will raise the reserves to their lowest level since 1984".
It is noteworthy that the Strategic Petroleum Reserves are huge stocks of oil for emergency use, and are kept in huge underground containers in Texas and Louisiana.
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Biden accused his country’s oil companies of enjoying record profits while Americans pay high prices for gasoline, and said companies should use the money to produce more oil or restart idle wells instead of paying investors.
He added, “This is not the time to achieve record profits, it is time to advance the interest of your country,” noting that he directed the withdrawal of one million barrels per day from the strategic oil reserve for a period of 6 months.
The cost of oil has jumped in recent weeks, as Brent crude reached $139 a barrel following the Russian war in Ukraine and the sanctions imposed by the United States and its allies on Moscow, and despite the decline in oil prices. energy prices Since then, Brent crude prices are still nearly 70% higher than they were a year ago, and following Biden’s comments, Thursday, regarding withdrawing from strategic reserves, oil crashed by $5.
price reduction
Commenting on this, Keith Boyfield, a fellow at the Institute of Economic Affairs in London, said, “It is clear that the aim of the decision is to reduce the price of Brent crude. It is a long-term commitment, so the impact will be long, just as it happened in the seventies.”
Boyfield added, in statements to “Sky News Arabia”: “The focus will be on American shale oil, but the main problem with it is that it takes at least a year to raise production significantly, drilling workers do not start making profits until they see a return of 50 dollars per barrel. Therefore, the current prices should stimulate investment in shale oil while moving to address the bottlenecks.”
“The sharp rise in oil prices will act as a catalyst for more efficient use of hydrocarbons. This time we will see a greater shift to electric propulsion, as I speak now my local council here in Westminster, central London, is installing a wave of new electric charging outlets for cars, it will become general orientation.
Biden’s popularity
The Iraqi analyst, Hashem Abdul Karim, said: Biden began withdrawing from the strategic oil stored in the caves; With the aim of lowering fuel prices and thus reducing the anger of Americans and maintaining a majority in both houses of Congress during the elections scheduled for the eighth of next November.
He pointed out that Biden’s popularity has recently declined to high rates, and these fears among Democrats are reinforced by the victory of Republican candidates in the 2021 elections in New Jersey, Virginia and New York.
He explained that the second reason is the increase in pressure on Russia, as Biden stressed that Washington would not allow Putin to use his energy resources as a “weapon”, stressing that Biden’s decision came following Russian President Vladimir Putin demanded that foreign buyers pay for Russian gas in rubles, otherwise Moscow will be cut off. supplies for them.
He pointed out that the third reason is Iran’s evasion in the Vienna negotiations, as Tehran was seen as an alternative to Russian fuel, which was confirmed by the new US sanctions on suppliers of Iran’s ballistic missile program.
In a research note, commodities analysts at Goldman Sachs said that the release of US reserves would help the oil market rebalance in 2022, but would not solve its structural deficit.
The Goldman Sachs report said: This step is capable of restoring balance to oil prices, in a world without the necessary reserves for emergency times.
According to the American newspaper, “Financial Times”, “The new withdrawal is the largest ever announced, and it will last 6 months, which leads to the depletion of nearly a third of the strategic petroleum reserves of the United States, and the decline will raise the reserves to their lowest level in a year.” 1984″.
According to the “Financial Times” newspaper, “the new withdrawal is the largest ever announced, and will last 6 months, leading to the depletion of nearly a third of the strategic petroleum reserves of the United States and the decline will raise the reserves to their lowest level since 1984.”
It is noteworthy that the Strategic Petroleum Reserves are huge stocks of oil for emergency use, and are kept in huge underground containers in Texas and Louisiana.
