In the wake of OPEC’s two million barrel per day announced production cut, the Biden Administration has responded with a cynical set of policy responses that will further damage the US and world economies.
First, there is the well-publicized announcement to withdraw another 10 million barrels from the Strategic Petroleum Reserve. The Administration touts this as a win for consumers but it is a last-ditch effort to rescue Democrats in the midterm elections. The release represents about five days of average US crude oil consumption. That’s how long it will offset the OPEC production cuts.
Jonathan A. Lesser, PhD, is the president of Continental Economics, an economic consulting firm, and an adjunct fellow with the Manhattan Institute.
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