Top Line

President Joe Biden will announce on Wednesday that he will release another 15 million barrels of oil from the US Strategic Reserve, according to US officials cited in multiple reports, after OPEC+ puts gas prices under control before the midterm of next month. In a possible attempt to keep A group of oil-producing countries, including Russia and Saudi Arabia, announced production cuts earlier this month.

Key Facts

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Biden’s anticipated announcement is the final tranche of the 180 million barrels the administration promised to release in March, The Associated Press informed ofCiting White House sources.

The release will be immediate as a six-month deadline has been set for the originally approved release. spent this month.

The report said the president may approve the issuance of additional barrels from the strategic reserve in case gas prices rise again during the winter.

Believed to be part of the White House’s latest release a comprehensive effort To keep average national gas prices below $4 a gallon.

Gas prices gain attention as the midterm elections have shifted in favor of Republicans amid growing concerns about the economy and extremely high inflation.

On Monday morning, international benchmark Brent crude futures settled at $90.84 a barrel, up from around $85 a barrel at the end of the previous month.

amazing facts

With the latest extraction, US strategic oil reserves will drop below 400 million barrels—its lowest level Since 1984. Biden will also announce plans to replenish reserves once oil prices fall below $72 a barrel, according to the AP.

big number

$3.854. This is the national average price for a gallon of gasoline in the US, a . According to tracker Operated by the American Automobile Association. This is slightly lower than last week's average of $3.922, but still higher than last month's price of $3.677. Gas prices in the US have been falling for more than seven days.

main background

Earlier this month, the OPEC+ group of nations announced a 2 million barrel daily reduction in global oil production to prop up oil prices. Even as he attempts to tackle economic and electoral challenges at home, Biden has promised Saudi Arabia will bear the consequences To take the side of Russia to support the cuts. Other Democratic lawmakers have been more explicit, calling for a complete moratorium on all US arms sales to the Saudis. Washington is Riyadh's largest security partner for accounting More than 65% of all its arms imports. Saudi's decision was seen as a minor one towards Biden, who meeting Jeddah in July to meet Crown Prince Mohammed bin Salman, the de facto leader of Saudi Arabia. The resulting spike in oil prices is likely to hurt consumers in the West, while undermining their efforts to penalize Russian President Vladimir Putin for his decision to invade Ukraine.

Biden to release 15 million barrels from oil reserves, more possible (The Associated Press)

Gas prices fall for 7 days as White House considers selling emergency reserves to avoid alarming returns to $4 mark (Forbes)