It’s almost like a parody of CNN’s Babylon Bee. Instead, it’s proof that reality catches up with satire with today’s appalling haste.
Subject line: “Why Joe Biden can’t do much to lower gas prices.” Note that President Biden “faces growing pressure to intervene in the oil market as Americans pay a higher price to pump” – including pressure from Democratic lawmakers, who called on the president to release oil from the Strategic Petroleum Reserve – Horowitz argued that, “given the dynamics of competition,” the president doesn’t have much time and SPR mining won’t make much of a difference. .
“The price increase was triggered by surging fuel demand as the global economy recovered from the pandemic, as well as limited investment in boosting manufacturing outside the Middle East. Those changes may not be transient,” she wrote.
“In the past, when energy prices skyrocketed, that was enough incentive for American companies to start spending more to increase production. However, around this time, that funding is harder to come by. Investors are less likely to back long-term projects because they consider the consequences of the climate crisis. They are also pushing companies to keep costs low and focus on returning money to shareholders after the double price shock in 2015 and 2020.”
Never mind that Biden’s policies are the reason US energy companies are reluctant to increase production – and get knocked down when they try, as is the case with Keystone XL. She also noted that neither OPEC nor Russia want to increase production. Her reporting, for example, relies heavily on quotes from UBS analyst Giovanni Staunovo.
Staunovo said SPR is “the wrong tool to tackle today’s high prices… Strategic oil reserves often help during temporary disruptions.” For gas over $3 a gallon: “It could be the new normal where prices will continue to go higher.”
Nine days later, same writer, different from:
Amazing! It turns out he can do something – that’s when oil prices drop.
Is Joe Biden responsible for higher gas prices?
Yes: 99% (388 Votes)
No: 1% (4 votes)
While it may take some time for the drop in oil prices to show up at the pump in the form of lower gas prices, it’s worth noting that gas prices have mitigation, too. As Horowitz noted in his article, “some pressure has begun to build” for what has been roughly a uniform upward trajectory since the new administration took office.
Why? One reason is that Biden, um, might release oil from SPR.
In his article, Horowitz said, “Bjornar Tonhaugen, head of oil markets at consulting firm Rystad Energy, told me that the biggest factor driving prices right now is the release of strategic reserves. strategies from the United States and China.”
According to the White House, US President Joe Biden and Chinese President Xi Jinping discussed ‘the importance of taking measures to address global energy supply’ during their virtual summit. in this week. That sparked talk of a coordinated move initiated by the White House to bring millions of barrels of oil to market,” she reported.
A spokesman for China’s National Strategy and Food Reserve told CNN on Friday that it was ‘promoting work related to the release of crude oil at the moment’, but declined to comment. about whether it meets the US requirement to work together. to solve the shortage of supply. “
And while that may not be bearish in the long run, “more lasting relief is likely to come. NS [International Energy Agency] said in a report this week that it expects global oil supply to increase by 1.5 million barrels per day in November and December as some production in the United States rebounds. ”
For whatever reason, UBS’s Mr Staunovo – who was quoted by Horowitz nine days earlier as saying it was “the new normal that prices will continue to go higher” – was not quoted by CNN this time. Maybe he’s on vacation.
It should be noted that the headlines for Julia Horowitz’s stories do not just describe mutually exclusive scenarios involving gas and oil prices; they manage to pull off neat tricks of both going wrong.
On the first count, we know there’s a lot Biden can do to gas price reduction, both in the short and long term; Horowitz describes how the expected release of oil from the SPR will push prices down until more output can be brought online, something the president could help facilitate if he stays quiet. perhaps eating some crows followed his hard line on fossil fuels and encouraged oil production in the United States. Statuses.
Quelle was surprised – he doesn’t do that. Instead, follow The Wall Street Journal, the president sent a letter to the Federal Trade Commission on Wednesday accusing gas companies of illegal price-fixing, claiming there was “evidence of anti-consumer behavior by the companies.” oil and gas companies” because the price of gas has increased, despite the fact that the price of unmixed, unblended gasoline has decreased.
However, the second headline is wrong because it is not China or Joe Biden driving oil prices down, but the market valuation of the predicted moves of China and Joe Biden.
This is not a difference without a difference; The administration does not have a fixed energy policy, but instead, vacillates between moves designed to appease the progressive camp of the Democratic Party and American voters. The second group considers high gas prices to be a fault in the system; previously requested that it be a feature.
Which determines whether the administration releases oil from the SPR? Depends on where the pressure is felt most acutely. The market is betting it’s on disgruntled voters, who have just caused Democrats to lose heavily in the elections coming up this year.
But then none of these matters for CNN. Gas prices high? Don’t blame the president. Low gas prices? Thank him. That is as complicated as it gets.
When that mindset inadvertently generates hilarious opposite titles like the ones we’ve seen on top of Julia Horowitz stories, just nine days apart, you’ll appreciate a little more about it. How difficult it is to write. Babylon bee in 2021.
https://www.westernjournal.com/cnn-writer-said-biden-couldnt-anything-gas-prices-nine-days-later-different-story/ The CNN writer said there’s nothing Biden can do about gas prices. Nine days later, that’s a different story