Biden to Announce Release of 15M Barrels From Us Oil Reserves

President Joe Biden is set to announce the record release of the last 15 million barrels on the market from US strategic oil reserves, with the possibility of more releases if energy prices spike, says a senior US official.

This new share from the Strategic Petroleum Reserve will be “completing the 180 million barrel release authorized in the spring,” in light of the Russia – Ukraine war driving prices upwards, according to a senior US official.

The official adds that Biden’s announcement means that they will be  “making clear that the administration is prepared to undertake significant additional… sales this winter if they are needed due to Russian or other actions disrupting global markets,”

Dips into emergency oil reserves are usually for hurricane-related shutdowns at oil refineries but this decision to make the largest dip ever was President Biden’s way to lessen the blow of the Russia – Ukraine war on the economy.

After Russia invaded Ukraine back in February, it was given sanctions by Europe and the US and has caused major disruptions in the market. In response, Russia uses its energy supplies as leverage over the West.

In the US, gasoline prices have hit an average of $5 per gallon. Prices have since calmed down but inflation continues to be the main driver for Republicans to beat the Democrats in the upcoming November midterm legislative elections.

Aside from Biden’s plan of dipping into the oil reserves, the president is eyeing to refill the reserves as soon as prices go to $67 – 72 a barrel.

Source: Inquirer