Biden will release 15 million barrels of oil reserves

President Joe Biden will announce the release of 15 million barrels of oil from the US strategic reserve on Wednesday as part of a response to recent production cuts announced by OPEC+ nations, saying more is possible. oil sales this winter, as his administration rushes to be seen as pulling out all the stops before next month’s midterm elections.

Biden will make remarks Wednesday to announce the withdrawal of oil from the strategic reserve, senior administration officials said Tuesday on condition of anonymity to describe Biden’s plans.

It completes the 180 million barrel release authorized by Biden in March that was initially supposed to happen in six months. That has sent the strategic reserve to its lowest level since 1984 in what the administration called a “bridge” until domestic production could be increased. The reserve now contains approximately 400 million barrels of oil.

Biden will also open the door for additional withdrawals this winter in an effort to keep prices down. But administration officials did not detail how much the president would be willing to tap, or how much they want domestic production and production to increase to end the drawdown.

Biden will also say that the US government will replenish the strategic reserve when oil prices are between $67 and $72 a barrel or less, an offer that administration officials say will increase domestic production by ensuring a level of demand reference. However, the president is also expected to renew his criticism of profits made by oil companies, repeating a bet made this summer that public condemnation would be more important to these companies than shareholders’ focus on profits.

It marks the continuation of a sea change by Biden, who has sought to move the US away from fossil fuels to identify additional sources of energy to meet US and global supply as a result of disruptions from the Russian invasion of Ukraine and the production cuts announced by the Saudi-led oil cartel.

The potential loss of 2 million barrels a day, 2% of global supply, has prompted the White House to say Saudi Arabia has sided with Russian President Vladimir Putin, promising that supply cuts will have consequences that could boost energy prices. The release of 15 million barrels would not cover even a full day of oil use in the US, according to the Energy Information Administration.

[Con información de The Associated Press]

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