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To cushion the increasing oil prices, the Biden administration has plans to sell oil from Strategic Petroleum Reserve. President Joe Biden is expected to make the announcement ahead of next month’s congressional elections. The sale is part of the reaction to the high energy prices due to the Russia-Ukraine war. This comes only three months after the government released 20 million barrels from the reserve.
The administration is expected to release 14 million barrels from the reserve. Additionally, the U.S. government is working hand-in-hand with oil companies to sell an extra 26 million barrels in the fiscal year 2023.
Further details on the process of buying the oil back will be released by the Department of Energy. This shows the desire of the Biden administration to deal with increasing pump prices while supporting domestic drillers.
Increased gasoline prices have further caused an increase in inflation, which now stands at its highest in decades. It is increasingly posing a risk to Biden’s administration, and he has expressed the desire to prioritize the energy crisis. The midterm election will be held on November 8, and the ruling party is looking to keep control of the Congress.
Biden’s Administration Will Tap From The National Reserve
Last week, Biden said that gasoline prices are too high and he will be addressing the issue this week. His deputy energy secretary, David Turk, also stated that the administration wants to stabilize gas prices. The government will be tapping from the reserve in the coming weeks and months as part of that process. This comes after Biden announced the sale of 180 million barrels from March to October, the largest sale ever.
Biden’s administration has also spoken with energy companies on plans to buy back the oil from 2023 to 2025 to replenish the reserve. There are still 14 million barrels of SPR oil left to sell from the historic release, which was delayed by hot weather and holidays in July and August.
The White House will be closely monitoring the situation as it only has a small window between now and the Congress elections.
Read more: https://www.economywatch.com/joe-biden-to-release-more-barrels-of-oil-to-cushion-rising-gas-prices