White House Considering Tapping Oil Reserves To Address Price Hikes, Looks At Releasing 1 Million Barrels Per Day
US President Joe Biden is expected to announce today the plans to release oil resources from reserves–estimated at 1 million barrels per day for several months. This marks the biggest oil released by the White House since November.
The release from the strategic petroleum reserve could total up to 180 million barrels of oil should the move last for about 6 months, people familiar with the matter said.
As it stands, the reserve has approximately 568 million barrels of crude oil. The US also consumes around 20 million barrels per day.
Biden is set to speak today about “his administration’s actions to reduce the impact of [Russian President Vladimir] Putin’s price hike on energy prices and lower gas prices at the pump for American families”, based on the White House schedule.
Following the news of the oil release, the price of oil dove down by as much as 5%.
In November 2021, the White House announced releasing 50 million barrels of oil from its reserves, saying it is a move in parallel with other energy-consuming countries like China, India, Japan, the Republic of Korea, and the United Kingdom. But OPEC+ officials warned that it might reconsider oil production plans to address the releases from reserves.
Information for this briefing was found via Washington Post and Financial Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
