When Clinton resorted to oil reserves 21 years ago, here’s what happened!

Bill Clinton was among the American presidents who tapped the nation’s emergency oil reserves 21 years ago with the deliberate goal of fighting high prices, a move that President Joe Biden is now repeating.

As energy prices became a hot issue in the 2000 US presidential election campaign, Vice President and then-candidate Al Gore urged Clinton to run out of government stock after New York crude prices peaked. from 10 years to more than 37 dollars a barrel.

The next day, on September 22, the Clinton administration released 30 million barrels of strategic oil reserves, which helped drive prices down to just over $ 30. in about a week, but two weeks later they went back to $ 36.

And the Bloomberg agency said in a report seen by Al Arabiya.net that in the weeks that followed, what really set the mood in the market was what OPEC was doing and concerns about heating fuel for the winter after oil production in the Saudi-led union hit peak. his Since 1979, in October 2000, the production of fuel oil in the United States has increased, prices have fallen sharply in December to close that year at less than 26 dollars.

Biden believes his efforts to talk about oil impacted the market before announcing any reserve releases. But now the market appears to be more focused on OPEC’s reaction.

Obama’s move in 2011

In 2011, then-US President Barack Obama faced heavy criticism from the oil industry and Republicans for agreeing to release the country’s emergency oil supplies, a decision senior officials said was motivated by necessity. to support the faltering economy.

Observers have criticized the withdrawal of 30 million barrels of reserves, half of the global pumping coordinated by the International Energy Agency, saying it is abusing the reserves in one moment in where US supplies are relatively high.

Some OPEC officials went so far as to describe it as a political ploy that ignored Saudi Arabia’s promise to increase production and the fact that oil prices had already dropped dramatically.

But the move raised questions about the timing and catalyst for the stock release, which in in the past they were intended to deal with sudden disruptions such as natural disasters.

The Obama administration was also concerned about the markets in view of the peak of demand in summer, when many Americans come down in square for the holidays. A jump in gasoline prices at the beginning of questyear (2011) damaged Obama’s support as the White House prepared for its re-election campaign.

Markets also suffered from a supply gap caused by political turmoil in Libya and Yemen stifled the supply of light crude, which initially led to a rise in oil prices.

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