The Biden administration plans to release 15 million barrels of US emergency stockpiles and may consider significantly more this winter to ease high gasoline prices that have hampered Democrats in next month's midterm elections.
US President Joe Biden will announce the plan on Wednesday, senior administration officials told reporters on condition of anonymity Tuesday night to read his remarks.
This is the last tranche of oil from the program. In the spring, the White House began releasing a total of 180 million barrels of crude oil from the Strategic Petroleum Reserve to address high gas prices.
The president is also willing to make additional significant SPR sales this winter if conditions warrant, a senior administration official said. Biden will speak at 1:15 p.m. Washington time, the White House said.
In addition, the White House announced new details about its plan to replenish emergency supplies, which are capable of holding about 714 million barrels and contain 405.1 million barrels as of October 14. The administration plans to start buying when West Texas Intermediate oil prices are at or below $67-72 a barrel, according to a senior administration official. To date, WTI oil quotes are trading at $83:
The Energy Department will issue a notice on Wednesday that 15 million barrels of the initial tranche will hit the market in December. According to the official, a decision will be made next month on the need for additional issues in January.
The White House announced the sale as it reacts to rising pump costs amid factors that include OPEC+'s decision to cut output by 2 million barrels a day and volatile oil prices following the start of the Russia-Ukraine conflict.
Republicans have used gas prices, one of the most visible signs of inflation, as a weapon against Biden and Democrats. Polls show the economy has once again become a major concern for voters after the Supreme Court's decision to end nationwide abortion rights and the Justice Department's investigation into former President Donald Trump galvanized Democrats over the summer.
Republican Party spokeswoman Cathy McMorris Rogers criticized the move in a statement released early Wednesday morning.
"Instead of using the SPR to politically aid and empower America's adversaries, President Biden should end his war on American energy and join Republican efforts to restore our energy dominance," the Washington state legislator said.
The national average price for regular unleaded gasoline was $3.87 on Monday, up from $3.92 last week, according to the American Automobile Association. This is below a peak of $5.02 in June.
In March, Biden unveiled his plan to release a total of 180 million barrels to stop rising prices for consumers. To date, approximately 165 million barrels have been delivered or delivered under contract since the program went into effect.
