Sunday, October 2, 2022
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The US will release 1 million barrels a day of oil reserves to contain inflation

United States will release approximately one million barrels of oil per day of its reserves for six months beginning in May, a historic reduction that underscores the White House’s concern about rising gas prices and supply shortages after Russia’s invasion of Ukraine.

President Joe Biden will also invoke the powers of the Cold War to encourage national production of critical minerals for electric vehicle batteries and other products, the White House said in a statement. Battery materials will be included in the list of items covered by the Defense Production Act of 1950.

The White House said the release of strategic oil reserves is unprecedented.

“This record release will provide a historic amount of supply that will serve as a bridge until the end of the year when domestic production increases,” the statement added.

Biden will order the release of up to 180 million barrels of US reserves during the next few months. The president will speak about his plan at the White House at 1:30 p.m. (Washington time).

Gasoline prices are weighing heavily on november political outlookwhen voters will decide whether the Democratic Party will retain control of Congress.

Biden has struggled to control both gasoline prices and headline inflation that has hit 40-year highs as the global economy recovers from disruptions caused by the pandemic.

Despite the administration’s assurance last year that gasoline prices would fall in 2022, they have risen dramatically. The White House has attributed the increase to the invasion of Ukraine, noting in its statement that Gasoline prices have soared nearly a dollar a gallon since the start of the year.

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