Biden administration mulls largest-ever withdrawal from an oil reserve

The Biden administration is considering releasing up to 180 million barrels of oil over several months from the Strategic Petroleum Reserve (SPR), four US sources said on Wednesday, as the White House tries to lower fuel prices.

The announcement may come on Thursday, as the White House says Biden plans to talk about his administration’s plans to combat rising oil prices.

It has not been decided how long the withdrawals will last, but it can last for several months.

As a result of the news, oil prices fell by about 5 dollars per barrel.

High oil prices did not lead to an increase in production in this period, creating a challenge for Biden, whose popularity is waning as inflation rose to a 40-year high in February, and the cost of oil and gasoline rose after the outbreak of the Russia-Ukraine war.

The steady withdrawal of reserves will have an impact on the market, as it will contribute to closing the domestic production gap that dates back to February 2020, before the Coronavirus caused a sharp decline in oil production.

In November, the Biden administration announced the withdrawal of 50 million barrels from the strategic reserve, in coordination with other countries. After the start of the Ukraine-Russia war, the United States and 30 other countries agreed to withdraw an additional 60 million barrels of reserves.