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Prepare for an oil price war in 2022. The combatants are OPEC and a consortium of top energy consuming countries including the US, China, UK, Japan, India and South Korea. All of these countries have built up huge strategic oil reserves in case of emergency such as war or another 1973-style OPEC oil embargo. The US has the largest reserves with 638 million barrels tucked away in storage facilities in Louisiana, Mississippi and Texas. The last two times America’s oil reserves were used was after Hurricane Katrina and during the Gulf War. Biden is depleting them to combat the energy shortage which has pushed up prices to $81 a barrel and is threatening the US and world economic recovery from the pandemic.

The OPEC countries (and Russia), however, like the high prices and they are used to controlling the market to suit their needs by raising and lowering production. They fear that Biden’s move on economic rather than security grounds threatens their historic stranglehold on the market. An OPEC summit is planned for 2 December. The oil ministers were planning to announce a 100 million barrel increase in production from January; not enough to substantially reduce prices, but possibly enough to stabilise them. That is expected to be off next week’s agenda. President Biden also has internal problems in the form of the Republicans who advocate increasing domestic oil production and reinstating projects such as the Keystone XL oil pipeline to reduce reliance foreign sources. But that, of course, runs afoul of climate change promises.