Biden Announces ‘Unprecedented' Oil Reserve Release in Hopes of Curbing Gas Prices
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Loading... - Fiona Cullen
- 01 Apr 2022
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The Biden administration on Thursday announced the release of an average of 1 million barrels of oil per day from the nation’s strategic petroleum reserve in response to rising energy prices stemming from Russia’s invasion of Ukraine.
The White House said in a fact sheet that because of Russian President Vladimir Putin’s “war of choice, less oil is getting to market, and the reduction in supply is raising prices at the pump for Americans.”
But strategists said the move is a short-term fix for a long-term issue.
“The US potentially releasing one million barrels of oil per day is unlikely to make up for the lost Russian supply, and should fail to drive prices sustainably lower,” ING strategists said Thursday.
Russian output could drop by 3 million barrels per day in April, according to the International Energy Agency. That means that Biden’s actions would cover only roughly a third of lost production from Russia.
Biden on Thursday is also expected to call on Congress “to make companies pay fees on wells from their leases that they haven’t used in years and on acres of public lands that they are hoarding without producing.” Read More...
