Thursday, February 2, 2023
HomeInternationalUS shopping for 3 million barrels of oil to begin replenishing reserves

US shopping for 3 million barrels of oil to begin replenishing reserves


WASHINGTON: The Biden administration mentioned it’s shopping for 3 million barrels of oil to start to replenish US strategic reserves that officers drained earlier this yr in a bid to cease gasoline costs from rising amid manufacturing cuts by OPEC and a ban on Russian oil imports.
President Joe Biden withdrew 180 million barrels from the Strategic Petroleum Reserve beginning in March, bringing the stockpile to its lowest stage for the reason that Eighties. The acquisition, to start in January, will begin to replenish the reserve and is prone to be adopted by further purchases, officers mentioned.
The power division known as the acquisition “a very good deal for American taxpayers” for the reason that worth might be decrease than the $96/barrel common the US oil was bought for. The replenishment additionally will strengthen US power safety, the division mentioned in a press release. The acquisition worth was not introduced, however benchmark West Texas Intermediate crude oil was promoting at $74.50/barrel late Friday.
Tapping the reserve is among the many few issues a president can do by himself to attempt to management the inflation that makes People poorer and infrequently creates a political legal responsibility for the celebration in charge of the White Home.
World oil costs had been rising even earlier than Russia invaded Ukraine final February. When Biden introduced a ban on Russian oil imports in early March, he acknowledged it could come at a price to American shoppers.





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