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Biden’s Oil Buyback Plan Is a Signal to Drillers to Boost Supply

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WATCH: S&P Global Vice Chairman Dan Yergin talks about oil production in the U.S.Source: Bloomberg

The Biden Administration’s plan to buy crude to refill strategic reserves is signal a to U.S. drillers that there will be a market for more supply even if demand slumps, according to S&P Global Inc. Vice Chairman Dan Yergin.

This administration came in saying they wanted less production but now they have changed their points of view, Yergin said in an interview on Bloomberg Television’s “Balance of Power With David Westin.” But the industry has been reluctant to commit the capital, citing inflationary pressures and commitments to investors, he added.