U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices

R&I – FS

The White House on Thursday announced that the U.S. will release 1 million barrels of oil per day from strategic reserves to help cut gas prices and fight inflation across the country.

A fact sheet released by the Biden administration showed that the president plans to tap the nation’s Strategic Petroleum Reserve for the next six months as domestic producers ramp up production. The document also noted that the move came after discussions with American partners.

“The scale of this release is unprecedented: the world has never had a release of oil reserves at this 1 million per day rate for this length of time,” the White House fact said in a release. “This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up.”

Oil prices dropped on Thursday after reports Wednesday evening suggested such a move was imminent. President Joe Biden is set to offer remarks on efforts to quell energy prices later Thursday.

International benchmark Brent crude futures for May fell 4% to trade at $108.89 per barrels. U.S. crude futures slid 4.7% to $102.84. Earlier in the session the contract traded as low as $100.16.

— CNBC’s Pippa Stevens contributed reporting.

https://www.cnbc.com/2022/03/31/us-to-release-1-million-barrels-of-oil-per-day-from-reserves-to-help-cut-gas-prices.html

Scut FarKus

Article URL : https://www.cnbc.com/2022/03/31/us-to-release-1-million-barrels-of-oil-per-day-from-reserves-to-help-cut-gas-prices.html

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