Selangor Journal
US President Joe Biden speaks while hosting a Cinco de Mayo reception at the White House in Washington, the United States, on May 5, 2022. — Picture by REUTERS

Biden to release 15 million barrels from US oil reserves – White House

WASHINGTON, Oct 19 — The Biden administration will release 15 million barrels of oil from the US Strategic Petroleum Reserve and the deliveries are expected to take place in December, the White House said in a press release.

“The Department of Energy (DOE) is issuing a Notice of Sale tomorrow morning for 15 million barrels from the Strategic Petroleum Reserve (SPR) to be delivered in December,” Sputnik quoted the White House as saying in the release on Tuesday. “This sale will complete the historic, 180-million-barrel drawdown the President announced in the spring.”

The United States intends to repurchase crude oil to replenish the SPR when prices are at or below US$67-US$72 range per barrel, the release said. Crude oil is currently at about US$83 per barrel, according to the West Texas Intermediate benchmark.

Biden’s announcement is happening on the heels of ignored US requests to delay the decision by OPEC+ to slash oil production amid declining global demand.

The Biden administration is also asking US energy companies to sacrifice some of their profits by lowering the retail price of gasoline in the United States.

The White House noted it may take the United States several years to refill the SPR to its previous levels, but President Joe Biden is prepared to authorise the release of additional oil from the reserve into the global market in the coming months if necessary.

Moreover, the Biden administration will not hesitate to use any tools at its disposal to shore up the global supply of energy, support domestic inventory levels, and bring prices down in the United States, the release said. Among these options on the table is limiting US fuel exports, media reported.

At present, no decisions have been made with respect to punishing Saudi Arabia for its role in the OPEC+ move as the US government continues to contemplate how to best manage its core objectives in the Middle East together with responding to Riyadh, media reported.

Earlier in October, the OPEC+ group of countries agreed to cut oil production by 2 million barrels per day beginning in November and will take production levels agreed for August as a reference point. The move was made in response to uncertainty in global oil market outlooks, in large part caused by Western sanctions on Russian energy products and the G7 plans to introduce a price cap on Russian crude.

– Bernama

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