US President Joe Biden announced, on Wednesday, the release of 15 million barrels of oil from the strategic reserve to ensure the stability of fuel prices.
During his speech on measures to enhance energy security and reduce costs in the United States, Biden called on oil companies to reduce fuel prices in line with the decline in oil prices in global markets.
He said from the White House, "The price of oil fell last week in the global market, but we did not see a reflection of that in gas stations."
He also said that the United States "must rationally increase American production of oil."
Therefore, the US President asked Congress to expedite the approval of everything that increases the production of clean energy of all kinds.
This amount, which will be pumped into the market in December, will represent the last remaining part of a program announced by Biden in the spring to counteract the soaring prices of black gold due to the Russian invasion of Ukraine.
At that time, this program provided for the withdrawal of a total of 180 million barrels of oil from the strategic reserve.
The news reported on Tuesday by some US media regarding this decision was sufficient to reduce oil prices, as the price of West Texas Intermediate oil - for November delivery - declined by 3.08%, recording $82.82 a barrel.
Since the beginning of September 2021, the United States has withdrawn more than 212 million barrels from the strategic reserve, which reached its lowest level since June 1984.
A senior US official told reporters that "the president has instructed the Department of Energy to prepare to sell more (SPR oil) this winter if necessary, whether because of Russia or because of other activities that could disrupt the market," according to Agence France-Presse.
Gasoline prices in the United States are down 22 percent since mid-June when they peaked, but they are still 16 percent higher than they were in the same period last year.
As for diesel, its price has fallen slightly since June, due to the small stock of this commodity being sold today, at more than 50% compared to its price last year.
0 Comments