Biden planning to RELEASE oil from Strategic Petroleum Reserve in effort to combat surging prices

, Biden planning to RELEASE oil from Strategic Petroleum Reserve in effort to combat surging prices, Nzuchi Times National News

President Biden is planning to tap federal oil reserves in his latest move to tackle rising gas prices. 

Biden plans to announce in coordination with other nations in the coming days that he will pump oil out of the Strategic Petroleum Reserves, after OPEC+ nations in the Middle East rebuffed his pleas to pump more oil. 

The move will likely be in conjunction with India, South Korea and Japan, and China has said it is working to release some oil from its strategic reserves. Biden had called on the nation to do so during his bilateral meeting with President Xi Jinping

The US is tentatively planning to unleash 35 million barrels of oil, equivalent to about three days’ worth of crude oil production in the US. 

The average price of gasoline recently breached a seven-year high, and now costs $3.409 per gallon, according to AAA. 

The Consumer Price Index is up 6.2% over last year, and rose 0.9% in October alone, tanking public trust of the president. 

The nation’s oil reserves, stored in salt caverns in Louisiana and Texas, currently hold 604 million barrels of crude. Presidents typically tap them when emergencies or natural disasters disrupt the supply chain, although more recently have even tapped them to keep prices in check from time to time.  

, Biden planning to RELEASE oil from Strategic Petroleum Reserve in effort to combat surging prices, Nzuchi Times National News

, Biden planning to RELEASE oil from Strategic Petroleum Reserve in effort to combat surging prices, Nzuchi Times National News

President Biden is planning to tap federal oil reserves in his latest move to tackle rising gas prices

, Biden planning to RELEASE oil from Strategic Petroleum Reserve in effort to combat surging prices, Nzuchi Times National News

, Biden planning to RELEASE oil from Strategic Petroleum Reserve in effort to combat surging prices, Nzuchi Times National News

Biden plans to announce in coordination with other nations in the coming days that he will pump oil out of the Strategic Petroleum Reserves

, Biden planning to RELEASE oil from Strategic Petroleum Reserve in effort to combat surging prices, Nzuchi Times National News

The Organization of Petroleum Exporting Countries and its allies are scheduled to meet Dec. 2 and are eyeing plans to increase oil production by a mere 400,000 barrels per day in January. 

But, OPEC+ officials warned in turn they would respond if the world’s largest oil consumers tapped their reserves, setting up a fight for control of the global oil market.   

OPEC+ officials have said they may reconsider plans to add production at their meeting next week, according to Al Jazeera. 

The standoff demonstrates a fraught relationship between Washington and Riyadh, Saudi Arabia, traditionally a strong trade ally of the US.  

Biden has repeatedly pointed to OPEC+ and Russia for price hikes, and even called on the Federal Trade Commission to investigate for price-gouging as he tries to find a culprit for the inflation that is beguiling his administration. 

‘If you take a look at gas prices and you take a look at oil prices that’s a consequence of thus far the refusal of Russia or the OPEC nations to pump more oil,’ he said. 

OPEC+ in April 2020 cut output by more than 10 million barrels a day. The group has about 3.8 million bpd in supply cuts that it has not yet returned to the market. 

But another reason prices have surged is that the US cut production of oil by three million barrels in the summer of 2020, as the pandemic crushed demand. 

And as Biden begs other nations to pump more oil, he has taken a number of steps to curb oil and gas production within the US – pausing new oil and gas leases on federal land and revoking the permit for the Keystone XL pipeline.