Daily Management Review

USA to put 15 million barrels of oil from the strategic reserve on sale


According to the White House, the American president has ordered his administration to take more steps to improve energy security, handle oil supply issues, and lower fuel prices.

Jernej Furman
Jernej Furman
In response to rising energy prices, the White House unveiled Joe Biden's plan of action.

According to the White House, among other things, the President has instructed the Department of Energy to sell 15 million barrels of oil from the Strategic Petroleum Reserve (SPR) with delivery in December 2022.

The allotment of 180 million barrels from the reserve, which started in the spring to stabilize fuel prices in the U.S. market, would be finished with this oil sale. In order to prepare for oil sales this winter, Biden encouraged the Department of Energy.

When prices drop below $67-72 per barrel, increasing demand for crude oil, the President declared that the administration plans to buy it back for SPR.

A rule that would enable it to enter into fixed-price contracts for gasoline delivered in the future is being finalized by the Department of Energy. With this strategy, taxpayers would be shielded from rising prices, the future demand for crude oil would be more predictable, and businesses would be encouraged to increase production in an effort to bring down energy costs.

source: cnn.com