Daily Management Review

CNN: Biden may resort to commodity interventions to stabilise fuel market


After OPEC members disregarded Washington's efforts to raise supply, US Energy Secretary Jennifer Granholm said, the US is looking into other methods to lower fuel costs. Commodity interventions are one of the tools in Washington's arsenal.

Gage Skidmore
Gage Skidmore
"Unfortunately, OPEC is in charge of the oil price agenda... He (Biden) has the authority to demand that they raise supplies, but they have chosen not to do so in the last week. The president is considering all alternatives available to him "Ms. Granholm spoke to CNN.

The use of commodities interventions was not ruled out by the minister. Jennifer Granholm said, "It's one of the tools he has, and he's absolutely looking at the idea of utilizing it." The US may stabilize domestic gasoline prices by intervening in commodities markets.

Previously, US President Joe Biden accused Russia and OPEC nations of inflating fuel costs by refusing to expand oil supply. Mr. Biden feels that the scenario in which OPEC+ members do not raise output is incorrect. After the US Department of Energy said that the government was contemplating unleashing the country's strategic oil reserves to help stabilize market prices.

OPEC+ members backed a proposal to boost oil output by 400,000 barrels per day (bpd) in December. The OPEC+ monitoring committee ministers proposed this in early October.

source: cnn.com