WASHINGTON: President Joe Biden will announce on Wednesday he's putting the final 15 million barrels on the market from a record release of US strategic oil reserves, with more releases possible if energy prices spike, a senior US official said.
The decision to make the biggest ever dip into the emergency oil reserves - usually kept for responding to situations such as hurricane-related shutdowns at oil refineries - was Biden's gambit to calm energy markets and shield the world's biggest economy from Ukraine war shocks. At the same time as announcing the 15 million barrel drawdown for delivery in December - and flagging the possibility of more to come - Biden is highlighting a plan to refill the reserve as soon as prices hit around US$67 to US$72 a barrel, the official said.
The official described the SPR use as a"brilliant" bridge out of a crisis moment, playing"an incredibly constructive role through a very challenging time period".