The Unintelligible Psaki ‐​Biden Theory of Oil Prices

Alan ReynoldsJust as Congress was poised to ban imports of Russian oil, President Biden got the jump on them with an executive order. Despite the delay, it was the right thing to do as a  national expression of moral outrage over Russian military atrocities.The White House repeatedly explained its two ‐​week inaction by suggesting that U.S. gasoline prices depend on how much oil we buy from this one minor source of imports.In late FebruaryReuters reported, “As the White House developed the sanctions package… [officials] were concerned about the possible impacts of a loss of Russian oil supply at a time of rising U.S. gasoline prices … I want to limit the pain the American people are feeling at the gas pump. This is critical to me,” Biden sa id.”Similarly, in a  recent conference Press Secretary Jen Psaki said, “We don’t have a strategic interest inreducing the global supply of energy and that would raise prices at the gas pump. ” She added, “We are looking at options we could take right now tocut U.S. consumption of Russian energy, but we are very focused on minimizing the impact to families. If you reduce supply in the global marketplace, you are going to raise gas prices. ”The White House needs a  lesson in basic energy economics. The global market for oil depends on theamount demanded and supplied, not where it comes from or where it goes. The global market for crude oil does not depend on whether the U.S. imports oil from Russia or Canada, n...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs