The U.S. plans to release 15 million barrels of oil from emergency reserves to be delivered in December. The White House says it may consider releasing “significantly” more this winter.
President Biden will announce the plan Wednesday at 1:15 p.m. ET, as high gas prices pose a risk for elections. The move is primarily meant to counter OPEC+'s cuts and price volatility.
The 15 million barrels from the country’s Strategic Petroleum Reserve (SPR) are the final part of a 180-million-barrel release announced in March and does not constitute a further release.
The Original SPR Release Plan
It’s the final tranche of oil from a program the White House began earlier this year, and it plans to replenish the emergency stockpile by purchasing barrels of West Texas Intermediate crude when prices are at or below $67 to $72 per barrel.
The emergency stockpile has the capacity to hold roughly 714 million barrels and contained 405.1 million barrels as of Oct. 14.
Backlash from Biden
Biden has lashed out at energy companies that he said have not lowered prices at the pump as oil prices have gone down. An administration official who spoke to reporters on background ahead of Biden’s announcement said those corporations’ actions are “adding 60 cents to the average gallon of gas, and have kept pump prices higher than they would be otherwise.”
Biden’s team is keeping all options on the table to ensure stable domestic fuel supplies, according to a senior official.
More on oil:
Biden Mulls Options After OPEC+ Moves to Cut Oil Output
Russian Oil Ban on the Horizon, No Near-Term US/UK Trade Deal
DOE Announces Plan to Replenish Tapped Oil Reserves
