President Joe Biden plans to announce a potentially record release of oil from US strategic stockpiles to counter elevated gasoline prices in the wake of Russia’s invasion of Ukraine, US media reported Thursday.
The reports said Biden could announce as soon as Thursday plans to release up to one million barrels of oil per day for up to six months — in what would be by far the largest and most sustained ever tapping of the stockpiles.
The White House press office declined to comment on reports in Bloomberg, the New York Times and other publications. Biden was set to deliver remarks on lowering gas prices at 1730 GMT.
Oil prices fell sharply following the reports, which came as the OPEC + group of petroleum exporters decided to raise output only modestly despite the jump in crude prices since Russia’s military offensive.
A daily release of one million barrels per day for months would effectively bolster global oil supplies by about one percent.
It dwarfs earlier releases announced by the Biden administration in tandem with other countries on March 1 following the Russian invasion, and last fall in response to rising inflation.
President Joe Biden and his Democratic party are seen as facing long odds to maintain control of Congress in the November midterm elections due to runaway consumer prices – Copyright RIA NOVOSTI/AFP/File Sergey Krasnouhov
The move comes as Biden and his Democratic party are seen as facing long odds to maintain the party’s control of Congress in the November midterm elections, as runaway consumer prices weigh threaten to overshadow a strong labor market.
Gasoline prices currently stand at $4.23 a gallon, up 47 percent from their level a year ago.
The price of US benchmark West Texas Intermediate was down 4.6 percent to $102.89 a barrel, while Brent oil futures were down 5.5 percent at $107.20 a barrel.
Oil prices surged close to $140 a barrel in March on worries about lost Russia crude supply as some “self sanctioning” oil buyers shunned Russian crude in the wake of international sanctions on Moscow.
Prices have retreated somewhat since the United States banned Russian energy imports on March 8, but have lingered above $100 a barrel most of the subsequent period.
