Concerning the current event of President Biden and other nations releasing crude oil reserves in an effort
Question:
Concerning the current event of President Biden and other nations releasing crude oil reserves in an effort to increase supply and lower prices, how could the following be explained as far as the supply and demand and the effect on the supply and demand curves?
This is what I have so far but I am uncertain if it is a change in demand or a change in quantity demanded and how to explain it.
United States President, Joe Biden, has partnered with major oil-consuming nations like China, India, Japan, South Korea, and the UK in releasing oil reserves in response to the high demand and rising crude oil prices after the Opec group of oil-producing nations declined to increase their output more quickly due to their concern of a return of coronavirus cases driving demand down as seen previously during the pandemic. American consumers and businesses, along with other nations, are feeling the brunt of increased gasoline prices and energy bills as crude oil prices reach a seven-year high as the oil supply fails to keep up with demand. To curtail the lack of supply and lower prices the United States is said to be releasing 50 million barrels of oil from reserves, the United Kingdom is allowing firms to release 1.5 million barrels voluntarily from privately held reserves, and India is to release five million barrels, while we await announcements from South Korea, Japan, and China about their amounts and release dates. The actions of Washington teaming up with other major economies to lower energy prices acts as a warning to Opec and other big producers that there is a need to focus on the matter of high crude oil prices that are up more than 50% this year. Carsten Fritsch, a Commerzbank analyst, inferred that the actions being taken may cause Opec+ to amend its position and agree to increase output at the next meeting. A senior United States administration official told reporters, "We will continue talking to international partners on this issue." However, even though the effort will help support the global economic recovery, analysts question whether it will be enough to make a substantial impact. Caroline Bain, chief commodities economist at Capital Economics stated, "It's not large enough to bring down prices in a meaningful way and may even backfire if it prompts Opec+ [which includes Russia] to slow the pace at which it is raising output." Bain also stated, "As such, it seems quite symbolic and politically motivated" and "also seems a bit impatient," as the analysts agree that the market will move into surplus by the first quarter of next year if Opec+ continues to pump more oil.
Due to the recovery of economies across the globe from the Coronavirus pandemic, supply has struggled to keep up as the number of buyers has increased thedemand for crude oil, creating a shortage, which has drivenprices to a seven-year high. When graphed the increase in demand will causethe demand curve to shift to the right. (Is this correct or is it a change in quantity demanded?) Oil producers, mostly controlled by Opec+, have been unwilling to agree to increase the supply at a faster rate, so President Biden has partnered with other nations to subsidize crude oil by releasing oil from their reserves to increase the supply, thereby driving prices down. The increase in supply will shift the supply curve to the right. (Is this a change in supply or a change in quantity supplied?)