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Friday, April 1, 2022

U.S. to release one million barrels per day to cut oil price

U.S. President Joe Biden announced plans to release 180 million barrels of oil from its strategic reserve.

• April 1, 2022
Fuel pump
Fuel pump used to illustrate the story

To mitigate the economic impact of Russia’s invasion of Ukraine, U.S. President Joe Biden announced plans to release 180 million barrels of oil from its strategic reserve on Thursday.

According to the New York Times, the move is part of U.S. efforts toward bringing down high energy prices as the country intends to release up to one million barrels of oil per day from the nation’s strategic petroleum reserve.

Unveiling plans to tap from the country’s oil reserves, Mr Biden said, “I know how much it hurts. As you’ve heard me say before, I grew up in a family like many of you where the price of gallon gasoline went up; it was a discussion at the kitchen table.”

He added, “Our prices are rising because of Putin’s action. There isn’t enough supply. And the bottom line is if we want lower gas prices, we need to have more oil supply right now.”

Having limited options for influencing global commodities prices, the U.S. is resorting to tapping from its Strategic Petroleum Reserve, ordering the largest release since the reserve was founded in the early 1970s.

The release will only account for around five per cent of America’s demand and one per cent of global demand.

The Department of Energy, which manages the country’s oil reserves, revealed that the country had more than 568 million barrels of oil held in reserve as of March 25.

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