The Biden administration is considering releasing 1 million barrels of oil per day from the nation’s Strategic Petroleum Reserve in a bid to ease soaring gasoline prices, according to three people familiar with the matter..
The move would be the largest sustained release from the reserve in the program’s history, far surpassing the 500,000 barrels per day released during the 1991 Persian Gulf War. The White House is still discussing the issue and no final decision has been made, but the administration could announce the release as early as this week, the people said..
The White House declined to comment..
The potential release comes as the administration faces mounting pressure to address rising gasoline prices, which have hit a seven-year high. The national average price for a gallon of regular gasoline is now $3.84, up from $2.87 a year ago, according to AAA..
The increase in gas prices has been driven by a number of factors, including the global economic recovery from the Covid-19 pandemic, increased demand for gasoline as people return to driving, and supply disruptions caused by hurricanes and other events..
The Biden administration has already taken some steps to address the issue, including releasing 50 million barrels of oil from the Strategic Petroleum Reserve in November. But those efforts have done little to lower gas prices, and the administration is now considering more aggressive action..
The Strategic Petroleum Reserve is a stockpile of crude oil maintained by the U.S. Department of Energy. The reserve is intended to be used to offset supply disruptions and help stabilize oil prices in the event of an emergency..
Releasing oil from the reserve would help to increase the supply of oil on the market, which could lead to lower prices. However, it is important to note that the release of oil from the reserve is a temporary measure and will not address the underlying factors driving up gas prices..
In addition to releasing oil from the reserve, the White House is also considering other options to address the issue, including increasing domestic oil production and working with OPEC to increase global oil supply. However, these measures would take time to implement and are unlikely to have an immediate impact on gas prices..
The decision to release oil from the reserve is a difficult one. The reserve is a valuable asset and should only be used in case of an emergency. However, the Biden administration is facing mounting pressure to take action to address the issue of rising gas prices..
If the White House does decide to release oil from the reserve, it would be a significant step and could have a major impact on oil prices. However, it is important to remember that the release of oil from the reserve is only a temporary measure and will not address the underlying factors driving up gas prices..
