shine trader limited reports:
In recent months, the Biden administration has vowed to use all available means to curb the rise of energy prices. However, the current situation has proved that in the face of inflationary pressure across the United States transmitted by soaring energy prices, there are not many tools available to the White House.
In an interview with local media this week, the U.S. Department of energy said that there is still “no plan” to use emergency reserves or restrict U.S. foreign energy exports. These are the two market intervention measures that the administration can use.
U.S. government officials privately said that the impact of the release of strategic oil reserves on the market is small and almost negligible. Restrictions on exports could infuriate U.S. allies and violate long-term commercial contracts.
The White House acknowledged that they had no choice. White House press secretary Jen psaki told reporters on Friday, “what any president can do is limited because it is related to oil prices.”
The White House also said that it had instructed the Federal Trade Commission to investigate possible price fraud and the National Security Council to urge the oil producing countries union represented by OPEC + to increase production.
Earlier, when answering questions about rising inflation at a town hall seminar hosted by CNN on Friday, U.S. President Biden said, “my guess is that as we enter winter – sorry, next year, that is, 2022, you will begin to see gasoline prices fall. But during this period, I don’t think there will be any event that will significantly reduce oil prices.”
American voters are increasingly anxious about rising energy prices
The average retail price of gasoline in the United States was $3.387 per gallon on Monday (October 25), which has increased by about 50% since the year and exceeded the level before the epidemic. At the same time, the increase in international oil prices during the year was as high as 70%, in part because demand rebounded from the low point during the epidemic, and people’s spending at gas stations rose.
In the past weekend, the “Bomb cyclone” caused by the sudden drop of air pressure set off a storm in California and led to mechanical failure of two local refineries after historic downpours. The average retail price of gasoline in San Francisco, California, rose to $4.727 a gallon, only a cent lower than the record high set in 2012. According to the American Automobile Association, California is usually the state with the highest gasoline price in the United States. At present, the average retail price in the state is $4.55 per gallon.
The surge in energy prices and the rise in the prices of various commodities are hitting Americans’ wallets and threatening the economic rebound before the 2022 mid-term elections.
More and more American voters are now blaming Biden for rising prices: in a survey conducted by CBS News in early October, 66% of respondents blamed inflation on the policies of the US government, and 60% accused the Biden government of paying insufficient attention to this issue.
The trend of oil prices is often affected by changes in market supply and demand. Many energy advocates in the United States said that the environmental policies formulated by the current US government have limited the supply of oil and natural gas to the market.
Reprint indicated source：Spark Global Limited information