The release of 15 million barrels of oil from the so-called Strategic Petroleum Reserve will be announced by the president. That is the amount of oil the United States has on hand. And that release will take place in December, with 500,000 barrels entering the market every day. Despite factors like Russia’s actions in Ukraine, the White House claims that this release will help prevent gas prices from rising. And this release is connected to the administration’s March declaration that 180 million barrels from the stockpile would be released over a number of months, making it the biggest release in history. This initial 180 million figure includes these 15 million figures.
Announcement doesn’t significantly affect pricing. However, he did add that generally speaking, the 180 million barrels of oil released did assist people in getting through what he refers to as a difficult period from earlier this summer when gas prices were higher. He added that the administration’s action might be seen as retaliation against OPEC+, which just announced that it would reduce oil production by 2 million barrels per day. And he claimed that the government is telling OPEC that we have tools at our disposal by making this declaration.
After the 180 million barrels are drawn out of the stockpile, according to White House officials, there are approximately 400 million barrels of oil left. A four-decade low, that. The White House also claims that a plan is in place to replenish the reserve. Once the price of a barrel of oil falls below $72, they want to buy it back. It now costs around $10 less than that. According to officials, the sum would provide local producers some assurance so they may continue to pump oil. But it’s still not entirely clear when and how exactly that process would take place.
