United States may release oil from strategic reserve

United States may release oil from strategic reserve

As prices of oil continue to rise following Russia’s invasion of Ukraine, the United States is considering releasing another round of oil from its emergency reserves according to close sources.

Though the exact quantity is still being discussed among top aides of the President, it is expected to be more than 30 million barrels.

On Friday, President Biden’s top national security aide, Jake Sullivan said major economies of the world including the United States discussed oil supply and the potential for another round of releases to ease supply strains.

He said that oil prices and tapping emergency stockpiles were discussed in sessions in Brussels on Thursday, where Biden met with NATO, Group of Seven, and European Union counterparts.

According to a White House spokesperson, the President is very concerned about gasoline prices and wants to do what he can to mitigate them. A number of ideas are on the table but no decisions have been made, the spokesperson said.

The consideration of a new release from the reserve comes as the U.S. national average for retail prices is above US$4 a gallon, with near record-high prices raising political alarm bells for Biden and Democrats heading in to the mid-term elections. The average price for a gallon of regular unleaded gasoline was US$4.24 Thursday, according to auto club AAA.

Member countries of the International Energy Agency in a collaboration involving the United States had previously released 60 million barrels, but it had a limited effect in bringing down oil prices.

Over the last four months, the prices of oil have rallied with West Texas Intermediate for May delivery trading a US$111.01 at 10:47 a.m. in New York. Brent for May settlement was US$117.36 a barrel.

 

 

Author: Greg