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US releases strategic oil reserves to cool global crude prices

US releases strategic oil reserves to cool global crude prices

 "If you want a thing done well, do it yourself" is the rule that US President Joe Biden seems to adhere to. In particular, he announced that the US would release 50 million barrels of oil from the national strategic reserves in order to curb rising crude prices. Following an unsuccessful attempt to agree with OPEC+ on increasing oil production, the Biden administration decided to handle this issue on its own. “Today, the President is announcing that the Department of Energy will make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve to lower prices for Americans and address the mismatch between demand exiting the pandemic and supply," the White House said. The energy officials explained that the US would sell  32 million barrels of crude from four Strategic Petroleum Reserve sites, with two of them in Texas and the other two in Louisiana. Notably, Joe Biden managed to quickly build a coalition of those who wish to lower global oil prices. While OPEC ignored this idea and Russia was still contemplating, China, India, Japan, South Korea, and the UK agreed to release their strategic oil reserves together with the US. “This release will be taken in parallel with other major energy consuming nations including China, India, Japan, Republic of Korea and the United Kingdom. This culminates weeks of consultations with countries around the world, and we are already seeing the effect of this work on oil prices. Over the last several weeks as reports of this work became public, oil prices are down nearly 10 percent,” the White House officials noted.

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