In a coordinated effort with five other world powers, the United States on Wednesday tapped its Strategic Petroleum Reserve, a 620-million-barrel stockpile meant to be used in times of crisis. Dipping into this reserve for economic reasons has become more common, but a globally coordinated reserve release is rare.
The move was meant to reduce oil prices, which had drifted lower in anticipation of a reserve release, but oil prices rose on the news, gaining 2 percent, and have held most of that gain in trading on Wednesday. The steady rise in crude prices has pushed the price of gasoline higher — the U.S. average is $3.40 a gallon, up from $2.11 a year ago — presenting a political problem for President Biden.
Here’s why the effort to stop the rise in energy prices may not have the intended effect:
The reserve release was less than anticipated:Analysts expected 100 million barrels, but just over 65 million barrels are predicted to be released, with China and other countries contributing lower volumes than expected.
Much of the oil will have to be returned: More than half of the U.S. contribution is a loan, and that may restrict supply in the next year or so, when the United States buys those barrels back.
OPEC Plus could retaliate: The oil cartel and its allies have favored a slow increase in supply during the pandemic, and they may respond to the reserve release by restricting their production. “There are good odds that OPEC Plus will offset this, and they have a bigger fire hose than we do,” said Robert McNally of Rapidan Energy Group.
Where are oil prices headed next? Many economists think it will be hard to keep prices down for long. “Using strategic stocks to defend an oil price level set in a global market is pure folly,” Mr. McNally said.
Helima Croft of RBC Capital Markets told clients in a note that the Biden administration wanted to keep oil prices below $80 a barrel, so more releases could be coming. The president has also tried to tame prices in other ways, like asking trustbusters at the F.T.C. to investigate the conduct by large oil companies in the gasoline market.
Pandora will close its stores on Thanksgiving Day for the second year in a row.
Most locations will close by 5 p.m. On Friday, most will open an hour later than usual.
Hours may vary by location, with some closing as early as 5 p.m.
Most stores will have adjusted hours from 9 a.m. to 6 p.m.; 24-hour locations and 24-hour pharmacies will remain open.
Most locations, including 24-hour locations, will have regular hours on Thanksgiving and Friday. The company recommends calling ahead or visiting cvs.com to confirm local hours, as some locations will reduce hours or close for the holiday.
Stores will open an hour earlier than usual, at 7 a.m., and close an hour later, at 10 p.m. Regular hours resume on Friday.
Samsung will build a $17 billion semiconductor factory in Taylor, Texas, it said on Tuesday, giving a big boost to a bipartisan effort in Washington to persuade chip makers to build more of the components in the United States.
The company’s decision came after months of deliberation over possible locations in the United States and South Korea. The company, one of the world’s largest makers of computer chips, considered a site in Austin, which is about forty minutes from Taylor, as well as locations in Arizona and New York.
As Washington has urged chip makers to build more in the United States, cities have raced to get a piece of the potential boom. Taylor went to great lengths to lure the Samsung plant. The city, its independent school district and the surrounding county promised the company hundreds of millions of dollars in tax breaks. Semiconductor plants require abundant water and reliable power, so they reached a deal to transport water from the adjacent county for the facility.
Samsung’s decision comes during a major shortage of semiconductors, which are critical to products as diverse as Ford F-150s, medical devices and iPhones.
Lawmakers and the Biden administration have grown concerned that not enough of the vital components are made in America. China has invested heavily in incentivizing production of computer chips inside its borders, and Taiwan and South Korea both produce a major share of the semiconductors. Policymakers worry that leaves the United States at an economic and national security disadvantage.
The plant in Taylor will be the latest to be built in America in recent years. Intel broke ground this year on two new factories on an existing campus in Arizona. Taiwan Semiconductor Manufacturing Company is also building a new plant in the state.