What happened to oil prices on the first day of Joe Biden's administration and why is that important? | The State
Joe Biden announced that he will take steps to curb the supply of oil.
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PAUL RATJE / AFP / Getty Images
The prices of the Petroleum have risen due to the expectations that the new administration of the president is generating Joe biden who intends to spend $ 1.9 trillion to stimulate the economy and aim to adjust the supply of crude.
Janet Yellen, the former chair of the Federal Reserve and nominated by Biden to be Secretary of the Treasury Department The US government told the Senate Finance Committee that the government should “go big” on fiscal spending aimed at boosting the economy as it tries to recover from the US pandemic. COVID-19.
Analysts mention that the fall in dollar price, after Yellen’s comments, helped the oil price rally.
Biden is also expected to take steps to curb the crude industry including a pause in Arctic drilling for oil, entry into the Paris Agreement, and cancellation of a permit for the Keystone XL pipeline, which was authorized during the Trump administration.
“A ban on fracking on federal lands would have a negative impact on US production but is positive for the price of oil,” James Williams, energy economist at WTRG Economics told MarketWatch.
The price of WTI for February delivery increased 0.5 percent to settle at $ 53.24 dollars per barrel and the North Sea Brent price for March increased by 0.3 percent to settle at $ 56.08 dollars per barrel.
Related: How to Double the Next $ 1,400 Stimulus Check.
This Thursday the government of Biden suspended new leases for the production of fossil fuels in federal lands and watersas well as the issuance of new drilling permits for 60 days, Reuters reported, which could deal a major blow to the Texas oil industry.
The move to cut oil and gas production as well as coal mining comes at a time when President Biden has vowed to move quickly in the fight against climate change and getting the United States on the greenhouse gas emissions path by the middle of this century.
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