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| Photo Credit: AP. |
Followings cuts in oil production announced by the Organization of Petroleum Exporting Countries (OPEC +) nations, President Joe Biden is expected to announced Wednesday, the release of 15 million barrels from U.S. strategic oil reserves as the midterms approaches, The Associated Press reports.
Biden will
announce the measure Wednesday as the administration seeks to bolster the
chances of the Democrats in the November midterms and fight soaring inflation,
senior administration officials who spoke on condition of anonymity on the Biden
scheme told The Associated Press.
In March Mr.
Biden announced the release of 180 million barrels over a six-month period
expected to shrink the national reserves to about 400 million barrels.
Biden is
expected to say that the U.S. government will make a case for restocking the
strategic reserve when oil prices are at or lower than $67 to $72 a barrel,
which administration officials argue will support domestic production.
The move is
at odds with the president’s stands on climate change and the Biden
administration has in the past said the country should move beyond fossil fuel
production.
Saudi Arabia
and its oil allies announced oil cuts early this month, affecting only a small
fraction of OPEC+ production goals. In response the U.S. crude rose 3.3% to
$89.79 per barrel while international benchmark Brent rose 3.7% to $96.52.
Biden’s 15-million-barrel release is not enough to cover amount of oil required per day in
the United States, according to data from the Energy Information
Administration.
AAA reports that gas price average is $3.87 per gallon, which is down slightly over figures in the past week but higher than a month ago.