Photo: The Canadian Press President Joe Biden talks about the state of the country’s fight against COVID-19 at the South Court Auditorium on the White House campus on Wednesday, March 30, 2022, in Washington. (AP Photo / Patrick Semansky) President Joe Biden is preparing to order the release of up to 1 million barrels of oil a day from the country’s strategic oil reserves, according to two people familiar with the decision, in an effort to control energy prices that have soared as the US and the allies have imposed severe sanctions on Russia for its invasion of Ukraine The announcement comes as the White House says Biden plans to comment on his administration’s plans to fight rising gas prices. The duration of the release has not been finalized, but it can take several months. People spoke on condition of anonymity to preview the decision. High oil prices did not lead to more production, creating a challenge for Biden. The president saw his popularity plummet as inflation reached a 40-year high in February and the cost of oil and gasoline rose after Russia’s invasion of Ukraine. Crude traded at $ 105 a barrel on Wednesday, up from about $ 60 a year ago. However, oil producers have focused more on meeting the needs of investors, according to a survey released last week by the Dallas Federal Reserve. About 59% of executives surveyed said investor pressure to maintain “capital discipline” amid high prices was the reason they did not draw more, while less than 10% blamed government regulation. The steady release from stocks would be a significant amount and would close the closure of the domestic production gap compared to February 2020, before the coronavirus caused a sharp drop in oil production. The Biden government announced in November that it was releasing 50 million barrels of its strategic stockpile in coordination with other countries. And after the start of the Ukrainian war, the US and 30 other countries agreed to an additional release of 60 million barrels from the reserves, with half of the total coming from the US According to the Ministry of Energy, which manages it, more than 568 million barrels of oil were in reserve until March 25. Management planning news was first reported by Bloomberg.
