Arab Canada News

News

Biden decides to release an additional 15 million barrels from the strategic oil reserve

Biden decides to release an additional 15 million barrels from the strategic oil reserve

By Omayma othmani

Published: October 24, 2022

A senior American official announced on Tuesday that President Joe Biden will announce on Wednesday a decision to withdraw an additional 15 million barrels of oil from the strategic reserve to inject into the American market with the aim of lowering fuel prices, affirming that the White House does not rule out withdrawing additional quantities if necessary. This quantity, which will be injected into the market in December, will represent the last remaining portion of a program announced by the American president in the spring to address the rise in oil prices due to the Russian invasion of Ukraine. The program at that time stipulated withdrawing a total of 180 million barrels of oil from the strategic reserve. Also, the news reported during the day on Tuesday by several American media regarding this decision was enough to lower oil prices, as the price of West Texas Intermediate oil - November delivery - declined by 3.08%, recording $82.82 per barrel. Likewise, the senior American official told journalists that "the president has instructed the Department of Energy to prepare to sell more (from the strategic oil reserve) this winter if necessary, whether because of Russia or due to other activities that may cause market disruption." He added that Biden also intends to put in place a mechanism that would replenish the strategic reserve in the long term. He explained that the American government will start repurchasing oil when the price of West Texas Intermediate crude drops to between $67 and $72 per barrel. Also, since early September 2021, the United States has withdrawn more than 212 million barrels from the strategic reserve, which reached its lowest level since June 1984. In the same context, Biden, whose popularity polls show a decline, is seeking to curb inflation and ease its burden on American families through decisions that contribute to lowering prices before the midterm elections to be held on November 8.

Comments