A million barrels daily
Biden releases historical amount from oil reserves
03/31/2022, 10:11 p.m
The highest gasoline prices in the US for years are increasing the pressure on US President Biden. For the next six months, therefore, significant amounts are to flow from the strategic oil reserves. In order to reduce dependence on Russia, he also takes responsibility for domestic production.
Because of the high price of oil as a result of the Ukraine war, the USA will release a million barrels a day from its strategic oil reserves for six months. US President Joe Biden said the more than 180 million barrels were “by far the largest release from our national reserve in our history.” With the measure, Biden wants to depress the sharp rise in oil and gasoline prices, which are also damaging him politically.
“This is a wartime bridge to increase oil supply until production (in the US) picks up later in the year,” Biden said in a televised White House address. “This will provide a historic amount of supply for a historic duration. A six-month bridge through the fall.” At the same time, the US President called on the oil companies in the USA to boost domestic production. The corporations should not “sit on record profits”.
Biden wants to ease “pain” at the gas pumps
Congress must ensure that oil companies pay fees if they do not use production permits on public land. His plan will ensure that the “pain” families feel from high gas prices at the pump will be eased and that the “era of dependency and insecurity” in energy will end, the president promised. Other countries would also release additional oil and thus ensure that Russian President Vladimir Putin “cannot use his energy resources as a weapon against American families and families and democracies worldwide”.
Fuel prices in the USA have recently risen sharply due to high oil prices. They average $4.23 per gallon — a gallon is just under 3.8 liters — 47 percent higher than a year ago. Gasoline prices and consumer prices in general have already risen sharply over the past year as the country recovers from the economic impact of the corona pandemic. This was then reinforced by the Russian troop deployment on the border with Ukraine and the war of aggression that started on February 24th. In addition, on March 8, as part of the sanctions policy against Moscow, Biden imposed an import ban on Russian oil, which also led to higher prices.
Political pressure before congressional elections
Soaring gas prices and inflation, most recently at 7.9 percent – a 40-year high – are hurting Biden and his Democratic Party ahead of key midterm congressional elections in November. In polls, many voters name inflation as the biggest problem in the US. At many gas pumps, next to the price display, there are stickers with a photo of Biden and the phrase: “I did that.”
The Democrats must fear losing their majorities in the Senate and House of Representatives to the opposition Republicans in November. Biden has promised to support families in the face of price increases – and is now counting on the massive release of strategic oil reserves, among other things. A US official said the oil “could be on the market very soon”.
Biden announced the release of oil from reserves last year and then again in early March, but on a much smaller scale. On Wednesday evening, US media reported that Biden wants to release one million barrels of oil per day. That alone led to a significant drop in prices. A barrel equals 159 liters.