Will give out 10 to 15 million barrels between now and midterms.
Earlier this week, President Biden suggested he would announce new actions to address rising gas prices, which are expected to climb higher after OPEC+ announced it will cut production by 2 million barrels per day.
President Joe Biden intends to release another 10 million to 15 million barrels of oil from the Strategic Petroleum Reserve as the administration seeks to prevent another spike in gasoline prices ahead of the midterm elections. In March of this year, the administration announced the plan for a 180 million barrel drawdown, within which this release would fall.
The administration anticipates the drawdown to create longer-term demand for producers. The Department of Energy is also expected to announce details on a buyback program to replenish the stockpile after the release is over.
According to the American Automobile Association (AAA), the average gas price in the U.S. was $3.87 Tuesday, up from $3.67 last month but still down from the all-time high of more than $5 a gallon in June.
As the Lord Leads, Pray with Us…
- For wisdom for U.S. energy officials as they steward the nation’s oil.
- That the president and energy secretary seek the Lord’s guidance in their plans to further draw down the Strategic Petroleum Reserve.
- For the president and his administration to take discerning actions to support the U.S. economy.
Sources: Bloomberg, AAA, Washington Examiner, OilPrice.com
