Washington: US President Biden on Wednesday afternoon announced the release of 15 million barrels of oil from the United States strategic petrol reserve (SPR). The move came in the backdrop of the recent production cuts announced by OPEC+ nations, with more drawdowns possible this winter, as his administration rushes to be seen as pulling out all the stops ahead of next month’s midterm elections.
The barrels are set to be delivered in December, the White House said earlier in the day.
The release of 15 million barrels would complete the release of 180 million barrels authorized by Mr Biden in March which was initially supposed to occur over six months. That has sent the strategic reserve to its lowest level since 1984 in what the administration called a ” wartime bridge” until domestic production could be increased. The president said that the U.S. government will restock the strategic reserve when oil prices are at $70 a barrel, an offer that he argued will support domestic production by guaranteeing a baseline level of demand.
The reserve now contains roughly 400 million barrels of oil in deep underground storage caverns created in salt domes along the Texas and Louisiana Gulf coasts.