8.2 C
New York
Tuesday, October 3, 2023
HomeWorldUSUS may sell oil from emergency reserve this week: Reuters

US may sell oil from emergency reserve this week: Reuters

US President Joe Biden speaks in Eisenhower Administration Building in Washington DC, USA, on Wednesday, June 22, 2022

Samuel Corum | Bloomberg | Getty Images

Biden administration plans sell oil from the Strategic Oil Reserve in attempt to reduce fuel prices to next monthly congressional elections, three familiar sources with the case was said on Monday.

President Joe Biden announcement expected this week as part of of Russia’s response to the war on Ukraine, one of sources said.

The sale will market the remaining 14 million barrels from Biden previously announced and the largest release from the reserve of 180 million barrels that started in May.

The administration has also colloquial with oil companies to sell an additional 26 million barrels as a result of a sale authorized by Congress in fiscal year 2023, which began on October 1, a fourth source said.

Branch of Energy will also post more information on ended up buying oil back, reflecting the aspirations of the White House combat rising download prices now supporting domestic drillers.

The increase in retail gasoline prices contributed to the rise in inflation to highest in decades, creating risk Biden and his fellow Democrats forward of by-elections November 8, in which they seek to keep under control of Congress.

Biden said last week gasoline prices are too high and what would he more talk about cost reduction this week. David Turk, Deputy for Energy secretary, also said last week the administration could use the Strategic Petroleum Reserve, or SPR, in coming weeks and months as needed to stabilize the oil.

The administration said so. with energy companies on the purchase back oil until 2025 to replenish the SPR, sources said after Biden in March announced biggest sale ever, 180 million barrels, from May to October.

The Department of Energy still has about 14 million barrels. of SPR oil left sell from historical release because sales have slowed down in July and August on holidays and hot weather.

In addition, under a Congressional law passed several years ago, the administration is authorized to sell another 26 million barrels. of SPR oil in fiscal year 2023, which began on October 1st, the sale is likely to take place soon, one of sources said.

“The administration has small window ahead of interim dates to try to lower fuel prices or at least demonstrate that they are trying, ”said a source familiar with with discussions in the White House. “The White House is not like $4 a gallon of gas, and he made it clear that he would take action to prevent it. again.”

Average gas prices in the US hit about $3.89 per gallon on Monday, up about 20 cents a month ago and 56 cents higher how last year at this time on the motor AAA group. Gasoline prices hit a record above $5.00 on average in June.

The Department of Energy and the White House did not immediately respond to requests for comment about sales.

In May, the Department of Energy said it would announce tenders later this year. year for a buy-back of about one third of sale of 180 million barrels. Then it was assumed that supplies would be associated with lower oil prices and demand, probably after the financial year 2023 ending September 30th. next year. Two sources said that buy-spins can continue until 2025.

Biden officials in recent months also urged refiners including Exxon Mobil XOM.N, Chevron CVX.N and Valero VLO.N not to increase exports of fuel and warned them that he could take action if the factories did not build reserves.

The administration did not accept a potential ban of export of gasoline and diesel fuel off table though opponents of such move say it could exacerbate Europe’s energy crisis and raise fuel prices by home.

Follow World Weekly News on

Tyler Hromadka
Tyler Hromadka
Tyler is working as the Author at World Weekly News. He has a love for writing and have been writing for a few years now as a free-lancer.

Leave a Reply

Must Read