On Tuesday, U.S. President Joe Biden took an unprecedented step in an effort to reduce oil prices, and consequently gasoline prices, hoping to finally convince Americans that he is indeed a president for the middle class. Before Americans begin their long journeys for Thanksgiving holiday with their families on Thursday, the Democratic president launched an initiative to release 50 million barrels from the strategic petroleum reserve into the U.S. market, the largest volume ever decided for use.
Biden stated in a speech set against images of gas stations and tankers, "We are launching a major initiative." He pledged from the White House that the initiative "will not lower prices overnight" but "will make a difference." He added, "It will take time, but soon you will see a decrease in gasoline prices." The United States typically uses only a small fraction of these reserves, currently estimated at around 609 million barrels and stored underground in Louisiana and Texas, for natural disasters or international crises.
Not only did Biden order the use of the 50 million barrels to adjust prices, but he did so in coordination with other nations – a first of its kind. To this end, Washington and Beijing set aside their competition as China, one of the largest consumers of oil, joined this initiative alongside India, Japan, South Korea, and the United Kingdom, according to the White House.
Republican Senator Lindsey Graham condemned in a statement what he described as a "misuse" of these reserves, which are designated for "emergencies." He also accused the Democratic president of being responsible for the price increases by slowing investments in fossil fuels in the U.S., a claim echoed by conservative circles. Biden responded by calling this nothing but a "myth," adding, "My efforts to combat climate change do not raise gas prices."
The rising prices at U.S. gas stations, especially in a country where driving is essential due to weak public transportation, pose a significant political challenge for Biden. He has repeatedly stated that his main political goal is to alleviate the cost of living burdens on the disgruntled middle class as a result of globalization and the COVID pandemic. Biden aims to revive the American dream, which entails providing prosperity and success for all, to prove the superiority of the democratic model over dictatorship.
In this context, Biden has presented his agenda. Over ten days, he issued a massive $1.2 trillion infrastructure modernization plan and advanced the legislative process for a huge $1.75 trillion social and climate spending program. The battle against COVID is at the forefront of his agenda, as the Democratic president is set to vaccinate children and provide booster doses for adults.
Positive Message
However, despite this progress and job market growth, Biden is not very popular. The polling website FiveThirtyEight reported that his approval rating, which declined since the military withdrawal from Afghanistan this summer, fell below 43% on Tuesday. A part of this is particularly due to rising inflation, especially surging gasoline prices in a country where car usage is essential due to inadequate public transport.
Using 50 million barrels from the reserves is mainly symbolic, as this amount covers only three days of demand from U.S. refineries. However, Biden hopes that his initiative will have a morale-boosting effect, both on oil-producing countries like Saudi Arabia, which is hesitant to pump crude aggressively into the markets, and with the public opinion in his country.
The 79-year-old president, having exhausted discussions about efforts to contain the pandemic and combat recession, seems eager to send a more positive message. Biden stated in his speech on Tuesday, "On this Thanksgiving day, we have so much to be grateful for." He has appeared recently at several events to revive Thanksgiving traditions, particularly last Friday, when he seemed happy to pardon a turkey ahead of the holiday, amidst celebratory atmospheres.
