United States President Joe Biden is expected to announce on Wednesday the release of more oil from the country's reserves, just a few weeks ahead of the midterm elections.
The announcement would reveal the sale of additional 15 million barrels from the Strategic Petroleum Reserve in December, said a senior administration official. The move comes as the Biden administration seeks to address market pressures created by the OPEC+ decision to cut oil production targets.
Release of Oil Reserves
Biden's reported announcement is the latest step in the White House's unprecedented plan to balance global markets and address soaring gas prices at home. It also marks an extension of the six-month program that was designed to provide a bridge for domestic producers to increase their own oil production as the global market struggled in the wake of Russia's war on Ukraine.
The U.S. president's action, which rolled out in regular sales over the last few months, worked together with global economic concerns that helped drive the price of gas down for nearly three months straight, as per CNN.
During an event in Los Angeles last week, Biden said that the price of gas was still too high and noted that they need to bring it down. He added that he had planned to announce additional actions in the coming days to address the issue.
The planned action would fulfill the Biden administration's announcement made in March that it would release a historic 180 million barrels from the SPR over a six-month period. The Democratic leader also made clear to his advisers that if conditions permit, he is ready to authorize future releases to balance the market.
According to USA Today, the announcement comes as the national average pump price for a gallon of gas has significantly dropped since the summer season. However, it has also ticked up since September and is still higher than it was at the same time last year.
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Biden's Plan
The final 15 million barrels of oil is less than one full day's use of oil in the United States, based on data from the Energy Information Administration.
However, Biden's use of the SPR to address high gas prices has drawn criticism from outside observers who believe that withdrawals should be reserved for emergencies like wars or natural disasters.
But the White House says that the releases of the oil are addressing issues with international stability and that the SPR remains in a strong condition. A senior administration official noted that global crude oil supplies remain a challenge mainly because of Russia's continued invasion of Ukraine.
The official added that the SPR remains the largest strategic reserve with more than 400 million barrels remaining. They said that the Department of Energy remains very able and vigilant while being ready for the need to deal with additional challenges with supply and affordability.
The source also signaled that Biden may not be done with releasing oil from the reserve, adding that as the US heads into winter, it might need to consider releasing more supply to address a potential rise in costs, Fox Business reported.
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