U.S. To Release 15 Million Barrels Of Oil From Strategic Reserve

According to foreign media reports on Oct 19th, President Joe Biden announced on Wednesday to release 15 million barrels of oil from US strategic reserves in response to the recent cuts in OPEC’s oil production and might increase oil sales this winter. Senior government officials said on Tuesday that the President would deliver a speech on Wednesday to announce the drawdown from the strategic oil reserve. According to the previous plan, 180 million barrels of oil authorized by Biden this March have been released, reducing the strategic reserve to its lowest level since 1984. At present, the reserve contains around 400 million barrels of oil. Biden planned to implement more policies this winter in an attempt to keep international oil prices down, while his administration would replenish the strategic reserve when oil prices fall between or below $67 to $72 per barrel. This marked the policy shift of the Biden administration, which sought to move the US away from fossil fuels and identify more energy to satisfy US and global supply in response to disruptions caused by Russia’s invasion of Ukraine and production reduction announced by OPEC. The Energy Information Administration showed that 15 million barrels was insufficient for even one full day’s use of oil in the US. The report also mentioned the White House would make a decision about future releases one month later.