Biden to Release at Least 15 Million Barrels of Oil From Reserve
President Joe Biden is expected to announce the release of 15 million barrels of oil from the U.S. Strategic Petroleum Reserve in response to recent production cuts by OPEC+ nations, per AP News. This announcement comes ahead of next month's midterm elections.
Biden authorized the release of 180 million barrels in March, sending the reserve to its lowest level since 1984. Now, the reserve contains roughly 400 million barrels of oil. In total, this is the largest-ever release from the reserve, per The Washington Post.
"Biden will also say that the U.S. government will restock the strategic reserve when oil prices are at or lower than $67 to $72 a barrel, an offer that administration officials argue will support domestic production by guaranteeing a baseline level of demand," the AP News article reads.
The sales were intended to serve as a "wartime bridge" as domestic production in the U.S. ramps up, per The New York Times. But White House officials said on Tuesday that Biden is prepared to authorize additional oil sales later this winter, if needed.
The OPEC+ oil production cuts will likely equate to a loss of 2 million barrels a day, 2% of global supply—which will boost already high oil costs.
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