Biden Administration to Release More Oil to Combat High Prices

The Biden administration plans to release more oil from the U.S. Strategic Petroleum Reserve to prevent a rise in petrol prices during the summer. Senior adviser Amos Hochstein indicated that oil prices are still too high and the administration aims to reduce them further. The U.S. Energy Department is replenishing the reserve after selling a significant amount in 2022.

Reuters | Updated: 17-06-2024 10:01 IST | Created: 17-06-2024 10:01 IST
Biden Administration to Release More Oil to Combat High Prices
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The Biden administration is ready to release more oil from the U.S. strategic stockpile to stop any jump in petrol prices this summer, the Financial Times reported on Monday.

Senior Biden adviser Amos Hochstein told the newspaper that oil prices are "still too high for many Americans" and he would like to see them "cut down a little bit further". Hochstein, speaking to the FT said that the U.S. would "continue to purchase into next year, until we think that the Strategic Petroleum Reserve (SPR) has the volume that it needs again to serve its original purpose of energy security"

The Energy Department this year has been buying about 3 million barrels of oil per month for the SPR after selling 180 million barrels in 2022 following Russia's invasion of Ukraine. The move was an effort to curb gasoline prices that spiked to more than $5.00 a gallon, but it also reduced the reserve to its lowest level in 40 years. Earlier this month, Energy Secretary Jennifer Granholm told Reuters that the U.S. could hasten the rate of replenishing the SPR as maintenance on the stockpile is completed by the end of the year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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