Oil prices rose to a one-week high on Tuesday after a move by the United States and other consumer nations to release tens of millions of barrels of oil from reserves to try to cool the market fell short of some expectations.
The United States said on Tuesday it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude.
In remarks on Tuesday, President Joe Biden expressed optimism that gas prices would drop following the release of the reserves "before long."
"I told you before that we're going to take action on these problems. That's exactly what we're doing," Biden said in his remarks, broadcast from the White House. "It will take time, but before long you should see the price of gas drop where you fill up your tank, and in the longer-term we will reduce our reliance on oil as we shift to clean energy."
His administration has said it's also probing possible illegal conduct by oil and gas companies that are keeping prices artificially high.
The action on the strategic reserves drew an speedy rebuke from former President Donald Trump, who had this to say in a statement issued via his political action committee: "For decades our country’s very important Strategic Oil Reserves were low or virtually empty in that no President wanted to pay the price of filling them up.
"I filled them up three years ago, right to the top, when oil prices were very low. Those reserves are meant to be used for serious emergencies, like war, and nothing else. Now I understand that Joe Biden will be announcing an 'attack' on the newly brimming Strategic Oil Reserves so that he could get the close to record-setting high oil prices artificially lowered.
"We were energy independent one year ago, now we are at the mercy of OPEC, gasoline is selling for $7 in parts of California, going up all over the country, and they are taking oil from our Strategic Reserves. Is this any way to run a country?"
For their part, analysts said the effect on prices was likely to be short-lived after years of declining investment and a strong global recovery from the COVID-19 pandemic.
Brent futures rose $2.61, or 3.3%, to settle at $82.31, while U.S. West Texas Intermediate (WTI) crude rose $1.75, or 2.3%, to settle at $78.50.
The Associated Press and Newsmax contributed to this report.
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