The United States is facing its worst inflation since 1981, and poor economic performance and record oil prices have pushed Biden's average approval rating to an all-time low.

According to RealClearPolitics, a US pollster, Biden's average approval rating in the US is 38.8 per cent and 56.9 per cent of Americans are dissatisfied with his performance, compared with 43.3 per cent of former US President Donald Trump during the same period as president. The American people are dissatisfied with the Biden administration from a series of issues such as the economy, violent crime and immigration, and the first to bear the brunt is the price of oil and gas.

Not only is the public losing confidence in this government, but the Biden administration itself does not seem to be very confident.

On Wednesday, June 29, US Eastern time, according to media reports, the Biden administration has begun to analyze and simulate what kind of damage the international oil price will do to the economy when the international oil price reaches $200 a barrel, as the media commented:

Instead of studying managing a naturally developing economy from a recovery to a period of steady growth, economic officials are analyzing and simulating a worst-case scenario, such as what an oil shock of $200 a barrel might mean for the economy.

Biden has made a lot of efforts to rein in oil prices, but they have had little effect. From releasing strategic oil reserves (SPR), imposing a windfall tax on the oil and gas industry like the UK, preparing to visit the Middle East to meet with Saudi princes, to writing letters to "threaten" major oil companies to take responsibility for government actions to lower oil prices, the situation may be even worse if oil prices remain high.

Us crude inventories fell 2.76 million barrels as strategic oil reserves continued to be released, according to belated EIA data on Wednesday; crude stocks in Cushing fell by 782000 barrels, falling to their lowest level since October 2014; gasoline stocks rose unexpectedly by 2.65 million barrels; distillate stocks unexpectedly increased by 2.56 million barrels; and refinery capacity utilization rose by 1 per cent.

The US Department of Energy said on Monday that it released 6.9 million barrels (about 985000 b / d) of crude oil from its strategic oil reserves last week, meaning the current US strategic oil reserves are below the 500m b / d mark for the first time since 1986. The International Energy Agency warned earlier that "global oil supply may struggle to keep pace with demand next year."

SPR may be the last buffer used to curb oil prices and global inflation later this year and 2023, so the next question may be, what happens without strategic oil reserves?

As Bloomberg Chief Energy analyst Javier Blas points out, the U.S. government has released 13.7 million barrels from SPR in the past two weeks, while commercial oil inventories still fell by 3 million barrels during that period. In addition, an earlier article on Wall Street also pointed out that since OPEC coordinated production cuts with its allies in May 2020, OPEC+ 's cumulative production has been 562 million barrels less than the level stipulated in the agreement, while Saudi Arabia and the United Arab Emirates are close to their limits.

Canceling the extra supply also means that commercial inventories are quickly depleted, putting upward pressure on oil prices, meaning that Biden's efforts to stabilize oil prices will eventually come to naught.

It seems "reasonable" to go back to the White House to analyze the news of the $200 oil price scenario.