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Saudi Minister Critical of US Oil Reserves Release

Saudi Minister Critical of US Oil Reserves Release

A Saudi Arabian minister has criticized the US government’s decision to release millions of barrels from US national strategic oil reserves.

Without naming President Joe Biden, Energy Secretary Prince Abdulaziz bin Salman said some individuals use emergency supplies to manipulate market mechanisms.

“I have to make it clear that the loss of emergency supplies could hurt in the coming months,” the minister said at the Future Initiative Investment (FII) conference. He proclaimed that countries should only use their strategic reserves to fill shortages.

Biden announced last week that 15 million barrels of oil from US strategic reserves are entering the market. In this way, he is trying to bring prices down at the gas pump in the November 8 midterm elections for the House of Representatives and the Senate.

The US built up its national strategic reserves in the wake of the oil crisis of the 1970s, which arose after an oil boycott by Arab countries. These are the world’s largest emergency reserves of oil, housed in underground tanks in Texas and Louisiana.

Saudi Arabia is the unofficial leader of the OPEC oil cartel. That alliance recently decided, together with several other major oil countries, including Russia, to cut oil production considerably to prop up the price.

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