The U.S. is on the verge of a resource crisis, forcing the White House to actively take action to stabilize the oil market. Crazy gasoline prices in the U.S. have made the American public extremely angry, and large companies are losing huge amounts of money due to unpredictable spikes in the oil market.
The U.S. is experiencing a huge oil shortage. The last time such a shortage was observed back in 1987 and 2001. Currently, the U.S. has 532 million barrels of strategic oil reserves. Every week the number of million barrels is decreasing by 5.3 million. At best the U.S. oil reserves have two years left. But from February 25 to May 20, reserves fell by another 50 million as the manufacturing sector intensified. However, these are government resources. In addition, some of the oil is in the hands of the private sector, and their resources are sufficient for 8 years. The problem is exacerbated by the low rate of oil production in the US. The U.S. produces 11.9 million barrels of crude oil a day, with an average increase of 25,000 barrels a month. The U.S. has imposed an embargo on oil supplies from Russia, which has deprived Americans of about 500,000-600,000 barrels a day or about 15-18 million barrels of oil a month.
On May 23 the U.S. retail price of a gallon of gasoline set a new all-time record of $4.60 per gallon, or $1.20 per gallon. That’s the national average. In California, for example, a gallon costs $6.07, or $1.60 per gallon of gasoline. Prices dropped slightly when the US begun to empty its strategic reserves. A barrel of oil in the U.S. currently costs about $114.
The U.S. has long tried to implement a plan to redirect oil supplies from Saudi Arabia. Washington has attempted several times to persuade the Saudis to increase oil supplies to the international market so as not to create a deficit since the U.S. imposed an oil embargo on Russia. So far, the U.S. requests have been ignored by the Saudis. Increasing oil production would have meant Saudi Arabia breaking the OPEC+ agreement, which is more important to Riyadh than ties with America for that matter. It got to the point where the U.S. sent a delegation to negotiate with Saudi Arabia. White House Middle East Policy Coordinator Brett McGurk and Amos Hochstein, senior adviser for global energy security at the State Department, flew to Arabia. The meeting took place on May 24. The U.S. had hoped that increased oil production in Arabia would help expand the oil sanctions package for Russia and reduce the price of fuel in the U.S., as it has risen too much recently. The Arabian side responded that the oil embargo against Russia would anyway lead to a shortage of oil on the world market and that an increase in oil production in Arabia itself would not solve this problem. In this case, the U.S. will be able to use the No Oil Producing and Exporting Cartels Act NOPEC, which allows filing lawsuits against OPEC member countries. The essence of the lawsuit is a violation of antitrust laws. In practice, such a trick is quite difficult to implement, because the lawsuit will lead to a freezing of foreign reserves of Saudi Arabia in the U.S., and this can provoke a complete refusal of oil supplies from Saudi Arabia, and then the oil market would collapse.
The U.S. is considering the pressure on Venezuela and Iran as alternatives and attempts to “squeeze” more oil out of these countries by various means. For example, Washington has already lifted several sanctions against Venezuela. The situation with Iran is more complicated because there are fewer points of contact. In the long term, Iranian oil could replace the Russian onr, especially since it is cleaner than Russian oil. It is also possible that this scenario, which was not possible a few years ago, may take place. Russian oil could enter the market under the guise of Iranian oil.
Whether the U.S. succeeds in exerting pressure on oil-exporting countries through soft power or harsh measures, the future will show. If it succeeds, everything will remain as it is; if it fails, the State Department will have to lift sanctions against Russia at least linked to oil. The only question is whether Russia will want to restore supplies, because as Russian Foreign Minister Lavrov said, Russia needs to rely only on its strength, and it will consider whether to resume a dialogue with the West in general. It is not ruled out that Russian oil will flow to the U.S. through third countries, as was previously the case with Venezuela.
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Is the US a dictatorship? What right does it have to threaten Saudi Arabia for not producing more oil?
A country is an autocracy when you vote to do A and they ( as soon as they get on the throne ) start doing B. And the B is dictated by powerful people in black suits called lobbyists.
Dictatorships are idiotic forms of autocracies, with the autocrat shows his face and makes himself a clear and defined target for coups, revolutions, assassinations and whatnot.
Excellent distinction. The whole point of the deep state is to no longer allow dictatorships. Those can be overthrown. A diffuse net of unelected supranational controllers is close to impossible to overthrow. Technopticon.
Both 0artirs ate OWNED by the zio terrorist jews, children of Lucifer
According to the US they rule the world through the ‘World Base Order’ they created and the EU supports with the rest of the US lackeys like Australia and Japan and others!
Serves the US right ,their intelligence is on a 1st year schoolchild’s level. Jscript on SF is under attack.
Seems to be you’re right.
Oil that they don’t need because the US gets everything it needs through fracking. The only reason it uses the federal oil reserve is to counter high oil prices while is raises the Federal Reserve rates to drop the inflation rate that the terrorist Russian president just created. Putin obviously could care less about the inflation destroying the Russian economy because he doesn’t give a shit about the Russian people. It’s all self serving. Vladimir Putin only cares about Vladimir Putin.
HAHAHAHAHA fracking!! The thing that sent the water taps on fire. Do you fucking know how much time is needed to extract oil or gas from a rock? How big and deep are the holes they make? How much chemical compounds they use? How environmentally destructive it is?
Get a brain shit troll.
I’m nor sure it makes much of the a difference compared to the environmental catastrophe that Putin the terrorist cockroach just created in Ukraine. It says all there to say about your complete disassociation from reality. Keep begging the US to lift sanctions. See how that goes.
schwuler Vollidiot. Lerne lesen und schreiben . Aber Du hast ja kein Gehirn . Denkst mit deinen Minischwanz
Wauw, right to the point, very intelligent reaction, something to be proud off. Keep such reaction in your family shield to show future generations how wit you where.
As an American myself, where the hell do you get your information?!?! Biden didn’t waste any time destroying America and provoking the Ukraine conflict that was started under Obama over 8 years ago! Putin had nothing to do with any of that and the inflation is due to the massive amount of spending and borrowing by the Biden Administration. Wake the F up, Russia IS NOT our enemy!!
They are too stupid to understand. Its too complicated for them. Its also probably too late for us that do get it. The woke joke traded Russia for Ukraine and that is a huge China win. Which sadly is what FJB and Milley with the rest of the new global order want anyway. They could not get Russia to play along. Not that Putin or Russia is above it as the G8 proved but when push came to shove they created their own boogie man to cease power at home. The only way we will get our country back is to end the woke globalist for good. They have to be broken. People still refuse to see it and the retarded rhino types were all too happy to forget they are the targets of the globalist woke, and willing to hold hands if they get to kill a communist! (Russian but they are too dumb to know the cold war is over) Either way were fucked. Things will not get better until we are fighting for canned goods on that day you can say things are starting too look up!
Vladimir Putin has already been turned away from ports in Egypt and Lebanon trying to sell stolen grain from Ukraine. Nobody wants to do business with a known mass murderer and a thief of international scale. That means that the terrorist Russian president has effectively paralized the entire economy of half the world. Low level inflation in the US is nothing compared with the absolute catastrophe that this fucking Russian moron is about to create.
Got another 25 Cents from your owner? Go on, and you can soon afford a pizza with original italian salami.
Correct, the use has no problem, the Brent barrel cost now 106$ the production cost for fracking oil 56$ a barrel, that makes 50 $ gain per barrel. Rissia has to sell his oil for 65$ per barrel or it is unable to sell! The US , Canada etc wants to flute the world with oil to battle infation and force the new Ussr to sell even cheaper and make Russia bleed heavier.
clean up the above article. it repeats gallon when pricing gas. that second one should probably be liter.
We are witnessing the collapse of the US empire right in front of our eyes.
The collapse of the US Empire of Terror is long overdue.
Civil war awaits the USA :)
We are witnessing the collapse of Federal Russia and maybe the weakening of the US but certainly Russia is all ready big time loosing and not only to the west but to the rest of the world; morally, military, industrial, politic, scientific, social and monetairly.
3rd world War has already started nobody knows when it will End ..?
No one in the US buys gas by the liter, but if you use that price, shouldn’t you say so?
Most of the world use litres so a gallon means nothing unless one understands the conversion of whichever it is , Imperial or US gallon which are different.. So I can convert the US $ per litre to my currency and know the price of petrol in the US otherwise it is meaningless. SF stuffed up using gallon when they meant litre but most people would realise that.
USSA and its IOU fiat filth Saudi Mercan petroscrip toilet paper dollah is circling the crud caked bowl of its brief and evil history. Thank goodness and with the dollah turd follows the welfare warfare ZionaZi entiy in occupied Palestine.
No more dollahs…no more global terror on everyone else’s dime.
There are 35 million barrels of crude parked off Galveston, awaiting refinery space. 50 million, parked off Long Beach. And who knows how much, parked off the East coast. So the only reserves being depleted are the refineries shutting down. We need dozens of new refineries, just to catch up with the current oil supply available, on hand. And demand.