Why, then, do U.S. oil prices hinge on the actions of an international oil cartel? The U.S. produces 18.8 million barrels of oil per day but consumes slightly more — 20.5 million barrels per day. McNally argues that what matters most for stabilizing global oil prices is “spare production capacity” — defined as how much a producer can ramp up oil production within 30 days. That spare production capacity allows a producer to ramp up — or slow down — oil production basically at will, shifting global prices. (Earlier this year, Biden ordered the release of 1 million barrels of oil a day in an attempt to lower oil prices.)

Source: Washington Post October 09, 2022 11:46 UTC