Biden announces ‘largest release of oil reserves’ in effort to curb gasoline prices
Joe Biden has announced plans to release up to 1m barrels of oil a day from the strategic reserve, in an attempt to contain high gasoline prices and curb inflation exacerbated by the war in Ukraine.
The president spoke from the White House to announce the move, which he said would represent the largest-ever draw ever on the country’s emergency supplies.
“Look, I know gas prices are painful. I get it. My plan is going to help ease that pain today and safeguard against tomorrow,” Biden said.
“I’m open to ideas and to strengthen the plan, but I will not be put off and put it on hold. I will do everything at my disposal to protect you from [Russian president Vladimir'] Putin’s price hike. It’s not time for politics. Americans can’t afford that right now.”
Global oil prices dropped sharply when news broke earlier of Biden’s expected announcement.
The administration is reportedly considering extending the release for as long as six months, with a potential limit of 180m barrels drawn from the current national reserve of 568m barrels.
The possible injection into the market of oil reserves, first reported by Bloomberg, comes as the Biden administration is wrestling with the political fallout of high petrol prices and rising inflation. According to the American Automobile Association, the US average now stands at $4.23 a gallon, up from $2.87 a year ago.
Extraordinary measures including gas rebates are being considered by California, the worst-hit state, where an average gallon of petrol now costs close to $6.
Any US release of national reserves is likely to be coordinated with other countries under the auspices of the International Energy Agency. Opec oil producers have so far resisted increasing output in the wake of Russia’s invasion
Read more on theguardian.com
