“Following consultations with allies and partners, the President will announce the largest reserve release in history, placing an additional million barrels per day daily over the next six months,” a White House statement said.
“The magnitude of this release is unprecedented: Never in the world have reserves been poured (into the market) at a rate of one million barrels per day for so long. This record release will provide a historic amount to serve as a bridge until the end of the year, when domestic production increases,” the note added. The release of reserves would be equivalent to increasing world supplies by about 1%.
The move will dump a significant amount into the overheated global oil market, which has sent ripples through the US economy.
Battling bad poll data, the Joe Biden administration is trying to show that Biden has a solution to a problem born of the pandemic and spread by the war in Ukraine.
Oil fell sharply after initial reports of the US plan, which came as crude exporter group OPEC+ decided to modestly increase output ignoring calls to ease price pressure from the war in Ukraine.
Source: Ambito
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