Biden will release 15 million barrels of US oil: A senior US source says President Joe Biden will announce on Wednesday that he is selling the last 15 million barrels of oil from a record-breaking release of US strategic oil reserves. If energy prices go up, more fat may release.
A senior US official said that the extra oil from the Strategic Petroleum Reserve would “complete the 180 million barrel release allowed in the spring” in response to rising prices caused by Russia’s invasion of Ukraine.
The president will be “making clear that the administration prepare to conduct considerably more… sales this winter if they require due to Russian or other measures disrupting global markets,” the person said. Biden will announce the order in a speech.
Biden used the greatest ever amount of the emergency oil stockpiles to calm energy markets and protect the world’s largest economy from the Ukraine crisis.
Russia sanctioned by the US and EU in February after invading Ukraine, causing market chaos. The Kremlin has also vowed to use its economic clout over energy supplies against the West, helping Ukraine resist the invasion.
Biden worries about high gas costs that outraged the nation. Inflation is still the major reason Republicans want to defeat Democrats in November’s midterm congressional elections, even if prices have fallen.
The senior official emphasized that the Strategic Petroleum Reserve was not utilized carelessly while speaking on the condition of anonymity.
Biden is spotlighting a strategy to replenish the reserve as soon as prices reach about $67-72 a barrel at the same time as announcing the 15 million barrel drawdown for delivery in December — and hinting that there may be more to come, the person said.
According to him, this sends “an essential signal to producers that the SPR will play a role in helping to regulate and stabilize price movements, not only when prices are going up but also when prices are going down.”
The official said that the reserve has more than 400 million barrels and is still in excellent condition. According to the speaker, that is still a sizable sum and provides “extra potential” if we need to conduct more sales.
The official praised the SPR for acting as a “great” way out of a dilemma and being “very productive” during a difficult time.
Stability is “not quite there now,” however, since “further volatility” anticipate from Russia and production levels have not yet returned to their pre-Covid pandemic levels.
An official refused to affirm or deny when asked if the United States might take the more drastic step of restricting petroleum exports. Which would help lower domestic costs but affect international purchasers, particularly in allied nations.
The person, who also spoke on anonymity, added, “We’re keeping all options on the table.”