action is aimed at global energy markets, but also at helping Americans coping with higher inflation and rising prices ahead of Thanksgiving and winter holiday travel.
Oil prices had dropped in the days ahead of the announced withdrawals, a sign that investors were anticipating the moves that could bring a combined 70 million to 80 million barrels of oil onto global markets.announcement, India said it would release 5 million barrels from its strategic reserves.
officials say it’s the biggest coordinated release from global strategic reserves.
There are roughly 605 million barrels of petroleum in the reserve.
The Biden administration argues that the reserve is the right tool to help ease the supply problem.Americans used an average of 20.7 million barrels a day during September, according to the Energy Information Administration.
Energy Information Administration figures indicate that domestic production is averaging roughly 11 million barrels daily, down from 12.8 million before the pandemic started.
“The only long term solution to rising gas prices is to continue our march to eliminate our dependence on fossil fuels and create a robust green energy economy,” Senate Democratic Leader Chuck Schumer said in support of the release.Biden and President Xi Jinping of China talked over steps to counter tight petroleum supplies in their virtual meeting earlier this month and “discussed the importance of taking measures to address global energy supplies,” according to the White House.
The Department of Energy will make the oil available from the Strategic Petroleum Reserve in two ways; 32 million barrels will be released in the next few months and will return to the reserve in the years ahead, the White House said
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