The Department of Energy will release 15 million more Barrels of Oil to Contain Gas Prices and plans additional releases this winter.
The United States plans to release millions of additional barrels of oil from the Strategic Petroleum Reserve in December and to make additional releases over the winter, White House officials said on Tuesday evening. The releases from the strategic reserve this year have been a dramatic step by the United States to contain its gasoline prices and stabilize energy prices around the world. Barrels of Oil to Contain Gas Prices, The latest move comes three weeks ahead of the midterm elections and amid growing concern that inflation could worsen as winter approaches and the conflict in Ukraine drags on. Officials said the United States would release an additional 15 million barrels of oil from the reserve in December, exhausting the 180 million barrels that President Biden authorized to be sold earlier this year. The sales were intended to serve as a “wartime bridge” as domestic production in the United States ramps up, but White House officials said on Tuesday that Mr. Biden is prepared to authorize additional oil sales later this winter if needed. The reserve can hold about 700 million barrels of oil and has about 400 million remaining. White House officials say they intend to replenish the reserve when world oil prices decline to a range of $67 to $72 a barrel; they are now hovering around $90. Mr. Biden is expected to announce the plan on Wednesday. Officials said he would also call on refining companies not to gouge prices and to pass lower energy costs resulting from the oil releases onto consumers.
Gas prices in the United States eased over the summer as the United States sold oil from the Strategic Petroleum Reserve and concerns about a global recession deepened. They have increased again in recent weeks after the Saudi-led OPEC Plus decided to scale back petroleum supplies on the market by up to two million barrels per day to bolster the price of oil. Barrels of Oil to Contain Gas Prices, The move angered Mr. Biden, who said last week that “there will be consequences” for Saudi Arabia’s decision. The White House has faced criticism from Republicans for depleting the strategic reserve ahead of the midterm elections, even as Republicans have made the specter of rising gas prices a central campaign theme. “Draining our emergency supplies is a shortsighted and dangerous choice that imperils our energy security at a critical time of global uncertainty,” Senator Jerry Moran, Republican of Kansas, said last week. The Biden administration has defended the decision, insisting that all Americans benefit from lower gas prices and that energy prices around the world are elevated because of Russia’s war in Ukraine. “President Biden has said for months how he is committed to doing everything that he can, in his power, to address Putin’s price hike,” Karine Jean-Pierre, the White House press secretary, said on Tuesday. “Should the president not do everything that he can to lower prices?”
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