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President Joe Biden will announce plans to utilize oil reserves to control gas prices.

Washington DC-President Joe Biden said he released up to 1 million barrels of oil per day from the country’s strategic petroleum reserves to manage soaring energy prices, according to two people familiar with the decision. I am preparing to order. The United States and its allies are imposing strict sanctions on Russia’s invasion of Ukraine.

The announcement may come soon on Thursday when the White House says Biden plans to speak out about his administration’s plans to fight rising gas prices. The release period has not yet been finalized, but it may last for several months. People talked to preview the decision on anonymous terms.

High oil prices are not driving more production and are a challenge for Biden. The president has seen inflation decline in popularity as oil and gasoline costs rise after Russia’s invasion of Ukraine, when inflation reached its 40-year high in February. Crude oil on Wednesday traded near $ 105 a barrel from about $ 60 a year ago.

Still, according to a study released last week by the Federal Reserve Bank of Dallas, oil producers are more focused on meeting investor needs. Investor pressure to maintain “capital discipline” in the highs of about 59% of the executives surveyed blamed government regulation for less than 10%, but no further pressure I said that was the reason.

Steady releases from reserves are a meaningful amount and are approaching to close the domestic production gap compared to February 2020 before the coronavirus causes a sharp decline in oil production.

In November, the Biden administration announced that it would work with other countries to free 50 million barrels from its strategic stockpiles. And after the Ukrainian War began, the United States and 30 other countries agreed to release an additional 60 million barrels from reserves, half of which came from the United States.

As of March 25, more than 568 million barrels of oil had been stored, according to the Ministry of Energy, which manages it.

News of the administration’s plans was first reported by Bloomberg.

Copyright © 2022 By AP communication. all rights reserved.



President Joe Biden will announce plans to utilize oil reserves to control gas prices.

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