Global energy prices have soared throughout Russia’s invasion of Ukraine, largely due to sweeping sanctions barring Western countries from purchasing Russian energy products. 📈 📈
The U.S. has been affected (to a lesser degree) than its neighbors across the pond in Europe. However, with the weight of inflation leaning on average Americans, the Biden Administration has tapped its strategic oil reserve to arrest prices in the near-term. 🛢️
The Biden Admin is now reaching deep: they announced a plan today that will release over a million barrels of oil per day for the next six months. The reason is pretty simple. 💡 It’s a midterm election year. Inflation is bad already, and energy prices staying this high would be tough news for Democrats’ election odds.
The 180 million barrels of oil to be released might go some distance in bringing down sky-high oil prices for average Americans — the massive release has already made an impact in the market. CFDs on WTI Crude Oil dropped 5.8% in trading today, briefly falling below $100. 📉
However, this move’s attempt to reduce energy costs in an effort to lower inflation next month is likely to be unsuccessful. We’re preparing our eyes for the next inflation readout. 😪 But first, let’s chat about what inflation is doing to consumer spending…