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Will Biden tap into the emergency oil reserve to bring down gas prices?

Over the past year, the average price of a gallon of gasoline has increased from $ 2.12 to $ 3.40, an increase of 60.3%.

CHICAGO (NewsNation Now) – President Joe Biden is seriously considering a plan on Tuesday to deal with high gas prices by tapping strategic oil reserves.

Biden is already scheduled to speak Tuesday on the economy and lower prices for the American people, and could then announce his plan.

Over the past year, the average price of a gallon of gasoline has increased from $ 2.12 to $ 3.40, an increase of 60.3%. Tapping into oil reserves is the fastest way to bring down gas prices. Sources told NewsNation’s Kellie Meyer that running the reserves could mean 10 to 30 cents less a gallon at the pump over the next two to three weeks.

It’s one of the few things the administration could do to lower prices, besides opening more federal leases for drilling.

However, this decision could prompt a reaction from OPEC, the Organization of the Petroleum Exporting Countries. The group could turn around and decide not to increase production. If OPEC reacts negatively to the Biden administration’s decision, we could see gas prices rebound by Christmas.

It’s not just gasoline that is getting more expensive – the cost of almost everything has gone up with inflation, including food.

“We know it’s difficult for families to keep up with the rising cost of gas, food, shelter and other essentials,” Biden said. “It’s not just an American problem. It is a global problem.

“My point is that a lot of what happens in inflation comes from a supply constraint,” said Austan Goolsbee, former chairman of the Council of Economic Advisers under President Barack Obama. “During the pandemic, people couldn’t spend money on services, which we normally spend most of our income on, so we have a record demand for physical goods in the United States and all other advanced economies. of the world, and the supply chain cannot handle that. And that’s why we have inflation.

Goolsbee believes inflation will be temporary, but remains a source of political concern. Biden faces lower polls on his handling of inflation. “We should be concerned politically rather than economically,” Goolsbee said.

“It will be until next summer before you start to see relief,” Goolsbee said. “And that’s not really on the political calendar they’re comfortable with.”


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