OPEC Delivers a Smackdown to Biden With Latest Move That Could Drive Prices Up

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Ron Klain, White House Chief Of Staff, was reportedly trying to brag about gas price drops even though they are still much higher than under President Donald Trump.

Klain, being part of the Biden Team, can’t help but spin — The national average is still above $3.75

They want to take credit for prices falling a little, even though they tried to blame Vladimir Putin for the invasion of Ukraine. These claims won’t last long for several reasons.

They haven’t solved the real problem. Instead, they’ve tried to artificially suppress it with releases from the Strategic Petroleum Reserves for the past six months. This is in an effort to reduce the real price and increase the Democrats’ chances to win in November. Some of our reserves went to China. This means that our reserves are at their lowest level in nearly 40 years. That’s also alarming. Biden’s administration stated that they would continue this for six months starting March 31. This will likely end soon, which could lead to prices rising again.

The second reason for the decline in prices is largely due to lower demand, fears of recession, and not any solutions that the Biden team attempted to address.

Joe Biden, hat in hand, went to Saudi Arabia to ask OPEC for more production. Even the Saudi Arabian prince laughed at Biden, calling him “much reduced” and saying that the problem was that Biden had cut the pipelines and hurt America’s ability to produce.

Now it is believed that OPEC will reduce production by 100,000 barrels per day in a slapdown to Joe Biden.

Oil prices rose naturally as a result.

U.S. crude oil rose 3.3% to $89.79/barrel, while Brent, the international benchmark, was up 3.7% to $96.50 after the decision.

Jason Bordoff, Columbia University energy policy expert, tweeted that the daily oil consumption may seem small but that they have fallen far enough.

This just goes to show how little they respect Biden, despite his pleas. It is also evident that Joe Biden’s policies against the energy industry have made us more dependent on OPEC than we were under President Donald Trump.

The White House’s response was a complete blank. It responded to OPEC in a statement that supposedly addressed it but made no mention of the OPEC move nor any real solution.

This comes on top of Europe’s energy crisis. Russia is turning the screws against them, as we reported, cutting off Nord Stream. Trump said that Germany was getting in trouble because of its reliance on Russia. Germany laughed. They’ll be freezing this winter, and they have serious problems. We have the supply and ability to meet both our needs as well as those of our European allies – if we only encouraged production and independence instead of relying upon foreign oil and poor energy policy.

However, this would require White House competence and we don’t have that right now.