Biden says the United States will release 1 million barrels of oil a day to reduce gas prices

The United States emits one million barrels of oil a day Strategic Petroleum Reserve President Biden announced on Thursday that he plans to cut more gas prices over the next six months. The move comes as low domestic oil production and Russia’s invasion of Ukraine push Americans north of $ 5 a barrel of gas in some parts of the country.

The president said he could not give definitive answers on how much gas prices will fall or how soon, but estimates that prices will fall by 10 to 35 cents a gallon. The White House hopes that the release from reserves will help narrow the gap until U.S. oil producers increase production later this year.

“My guess is, we’ll see it coming down, and it’s constantly coming down, but how far down, I think no one can say,” he said. “And there will be a little delay, because if you go to the gas station and buy ‘X’ size gas at a certain price, it’s not going to reduce the price at the pump until then. You can get back what you invested. And I’ll talk in a few days and weeks, but it’s hard to say. … but it’s going to go down. It’s going to go down a lot.

Mr. Reports that Biden plans to tap reserves have pushed oil prices down nearly $ 5 a barrel in overnight trading. U.S. oil traded at $ 101.65 a barrel on Thursday. But the overall economic impact on drivers is not clear. According to the AAA, the national average for gas is $ 4.23 a gallon, compared to $ 2.87 a year ago and $ 3.61 a month ago.

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The president criticized US oil companies for failing to produce enough oil for the country, while sitting on “record profits”. Domestic oil production was low during the epidemics and failed to reach pre-epidemic levels. Mr. Biden proposed a “use it or lose it” policy to encourage companies to produce more oil in the short term with their existing resources, and to encourage companies to pay for unused wells on federal land. Some companies are making progress, but others are more appealing to investors, he said.

“If we want to bring down gas prices, we have to have more oil supplies now,” he said. “For American oil companies that record the biggest oil profits in years, they have a choice: either by producing more oil, restarting dormant wells, or producing on sites they already lease. Give it a break by lowering the price at the pump. Or, as some of them do, they can exploit the situation, sit down and pass on the profits to the investors.

The energy sector will use the proceeds from the sale of strategic petroleum reserve barrels to recover reserves when prices fall. The United States is collaborating with allies and partners around the world to deliver more than 1 million barrels per day. The release of 1 million barrels a day marks the largest reserve release in American history.

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