US to release 14 million barrels of oil from reserves to cap gas prices: Report

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In a bid to tame the rising gasoline prices, the United States is reportedly planning to release 14 million barrels of oil from its strategic reserves, Reuters reported quoting sources.

The decision to divest part of its oil reserves comes ahead of the November midterm elections, as Biden’s Democratic Party is expected to face a tough fight from the rival Republicans.

Reuters reported citing people familiar with the matter that President Joe Biden is expected to make an announcement this week.

Notably, this is the second time that the Biden administration has decided to release oils from its Strategic Petroleum Reserve of 180 million barrels. In May, the president released 14 million barrels of oil.

“The administration has a small window ahead of midterms to try to lower fuel prices, or at least demonstrate that they are trying,” one source told Reuters.

“The White House did not like $4 a gallon gas, and it has signalled that it will take action to prevent that again,” the source added.

The West’s sanctions on Russian gas have been driving up oil prices across the world. In US, the price of gas rose to $5 a gallon in the aftermath of the sanctions but it has been trending lower as of late.

As per data from AAA Gas Prices website, the price of oil dropped to $3.87 per gallon on Tuesday and is expected to remain under $4 in the upcoming days.

Last week, Biden admitted that the gasoline prices have been trending on the higher side, and added that he was in talks to lower the costs this week.

His deputy energy secretary, David Turk, indicated about tapping into Strategic Petroleum Reserve last week, saying that the decision would be taken in coming weeks and months as necessary to stabilise oil.

(With inputs from agencies)

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