President Joe Biden will announce the release of 15 million barrels of oil from the US strategic reserve on Wednesday in response to recent production cuts announced by OPEC+ countries. He will also add that additional oil sales may be possible this winter as his administration rushes to be seen as it is making every effort in preparation for next month’s midterm elections.
In reaction to price increases brought on by Russia’s invasion of Ukraine, the latest batch of oil from the Strategic Petroleum Reserve will be “completing the 180 million barrel release authorised in the spring,” a senior US official said on Tuesday.
The order, which Biden will announce in a speech, means the president will be “making clear that the administration is prepared to undertake significant additional… sales this winter if they are needed due to Russian or other actions disrupting global markets.”
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Biden’s gambit to calm energy markets and insulate the biggest economy in the world from the shocks of the Ukraine war was the decision to use the largest ever portion of the emergency oil reserves, which are typically kept for responding to situations like hurricane-related shutdowns at oil refineries.
Shortly after its invasion of Ukraine in February, major energy exporter Russia was subject to US and European sanctions, which caused havoc on the markets. Additionally, the Kremlin has threatened to use its economic influence over energy supplies against the West, which is aiding Ukraine in its struggle to reject the invasion.
Gas prices that once averaged more than $5 per gallon caused outrage across the country and are a major domestic worry for Biden. Inflation continues to be the key element fueling Republican aspirations of ousting the Democrats in November’s midterm legislative elections, despite prices having since calmed.
(With inputs from agencies)
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