Joe Biden is running down the US strategic oil reserves to a 38-year low in response to high oil prices. But does he need to? A global recession might have more impact.
The move came two weeks after the OPEC rankled Biden by siding with Russia and agreeing to a production cut.
Oil production cut risks accelerating the cartel’s slide into irrelevance as it sides against the US and the West.
High and persistent inflation worldwide,and the actions by central banks to rein it in,are depressing economic activity,dampening confidence,and roiling financial markets.
Saudi Arabia’s decision to align itself with Russia and snub the West by supersizing oil production cuts will have significant consequences for the world.
Move to reduce global daily oil output by 2 million barrels is likely to boost prices and help Moscow fund its war in Ukraine
The next couple of days could determine the trajectory of oil prices in the near term and Russia’s vital oil revenues in the longer term,which have been central to its ability to fund the war in Ukraine.
If the West and EU hold their lines on Russian energy,the oil and gas crunch now being experienced around the world probably isn’t a temporary phenomenon - and it could deepen.
Depending on where you live in Greater Sydney,you could be paying up to 191.1¢ a litre to fill up the tank. See how the price has changed over 12 months,and where you can get the best deal near you.
The last thing a world still recovering from the worst economic effects of the pandemic and already experiencing high inflation needs is a global energy crisis.
Runaway petrol prices and improving economic conditions in Asia is expected to lead OPEC and its allies to revive oil supplies when they meet on Tuesday.