People familiar with the matter said that the Biden administration plans to release war reserves again ahead of congressional elections.

(Reuters file photo)

[Financial Channel/Comprehensive Report] People familiar with the matter said on Monday (17th) that the Biden administration plans to release war reserve oil again before the next (November) congressional election, hoping to reduce fuel prices.

U.S. President Joe Biden is expected to announce the news this week, this time releasing the remaining 14 million barrels of oil that Biden had previously announced, one of the people said.

The government is also in discussions with oil companies about plans to release another 26 million barrels of oil in the 2023 fiscal year, which begins in October, another person familiar with the matter said.

The Energy Department is also expected to release more details on the eventual oil repurchase, reflecting the White House's desire to support domestic suppliers while dealing with rising oil prices.

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Biden said last week that gasoline prices are too high, and more speeches on cost reduction are expected this week.

People familiar with the matter mentioned that after Biden announced in March that 180 million barrels of oil would be released from May to October, the government has discussed with energy companies to buy back oil by 2025 to replenish war reserves.

The administration will try to lower fuel prices before the midterm elections, and the White House, which does not want to see $4 a gallon of gasoline, has signaled it will take action to prevent that from happening again, people familiar with the matter said.

The American Automobile Association (AAA) said the average price of gasoline in the United States fell at around $3.89 a gallon on Monday (17th), up about 20 cents from a month ago and an annual increase of 56 cents.

U.S. gasoline prices hit an all-time high of more than $5 a gallon in June this year.

Neither the U.S. Department of Energy nor the White House immediately responded to news of the oil release.

Biden administration officials have also called on energy giants such as Exxon Mobil, Chevron and Valero in recent months to refrain from increasing fuel exports, warning that if refineries do not build up inventories, Authorities may take action.

Although the opposition believes that the move may exacerbate Europe's energy crisis and increase domestic fuel prices, the government has not lifted the ban that may restrict the export of gasoline and diesel.

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