Increased tension on oil from Saudi Arabia, now Joe Biden's big decision; will open the treasury of crude

Posted on 19th Oct 2022 by rohit kumar

Tensions with the US have increased due to the reduction in oil production by the OPEC+ countries led by Saudi Arabia. America says that OPEC is taking this step to benefit Russia. Recently, OPEC+ countries announced that oil production would be cut by 2 million barrels per day. Now internal sources say that Joe Biden is about to make a big decision and is about to open his Strategic Reserve to answer Saudi.

 

According to a senior Biden administration official, Joe Biden may decide to remove 180 million barrels of oil from crude reserves in the next 6 months. However, after this, America's oil reserves will be significantly reduced. There are currently 400 million barrels of oil in the US treasury. The US says that when oil prices are low, the emphasis will be on restocking.

 

The White House says Saudi Arabia is supporting Russian President Vladimir Putin. Oil prices will rise sharply when OPEC Plus cuts production. At the same time, according to the Energy Information Administration, extracting 15 million barrels of oil is not going to meet America's need for a day. There is also the matter that America is preparing for the mid-term elections. Therefore, the Biden administration does not want the public to be affected by rising oil prices.

 

The oil that America produces has not yet reached the level of production before Kovid. Mid-term elections in the US elect one-third of the House of Representatives, one-third of the Senate, and thousands of state legislative and executive office bearers. Because of their magnitude and importance, these elections receive far less attention than presidential elections and have far lower turnouts.

 

 

But these mid-term elections to be held on 8 November 2022, in one of the most closely divided Congress in history, could have far-reaching consequences. Democrats currently have a majority in the House of Representatives by a margin of only 10 seats out of 435. This is the lowest House majority since 1955. She doesn't have a majority at all in the Senate, which is split 50-50, relying on a tie-breaking vote from Vice President Kamala Harris.

 

This makes it historically impossible that Democrats will remain in the House. Since the Civil War, the President's party has lost seats in every midterm election except in 1934 (Great Depression), 1998 (Bill Clinton's impeachment), and 2002 (the first election since the September 11 terrorist attacks). Republicans only need to gain five seats to take the House. (with inputs from the language)

 

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