Two people familiar with the matter said that the Biden administration is considering working with allies to release the Strategic Reserve Petroleum (SPR) in response to rising energy prices amid the tensions between Russia and Ukraine. .
The source said that the Biden administration has not yet made a decision, and there are active discussions internally, such as setting a specific price for the trigger mechanism, how to coordinate with other countries, etc., and is currently building models to assess the scale and scope of the release.
Asked by reporters whether to consider releasing the SPR once more, White House press secretary Jen Psaki said: “This is definitely one of the options on the table. We’re focusing on every step we can work with our partners to reduce the global energy market.” affected.”
U.S. President Joe Biden said that the White House is closely monitoring energy supplies and is preparing to work with major oil companies to secure supplies and hit gasoline prices. “I hope to reduce the pain caused by high gasoline prices to the American people.”
Oil prices fell following the news came out in following-hours hours. West Texas Intermediate (WTI) futures settled up 0.2% at 92.10 a barrel Dollarthen dropped by nearly 1 DollarBrent crude earlier closed flat at 96.84 a barrel Dollarfell 72 cents or 0.8% following the news came out.
Crude oil prices recently headed towards 100 per barrel DollarJPMorgan Chase forecast on Wednesday that Brent crude oil prices will average 110 per barrel in the second quarter Dollar. Amid heightened supply risks in Ukraine, the International Energy Agency (IEA) said on Tuesday that member countries were ready to work with each other to ensure safe global oil markets.
Russia is the world’s largest exporter of natural gas, accounting for 17% of the world’s total. Russia is also a major exporter of crude oil, accounting for 12% of the world’s total, almost on a par with Saudi Arabia.
The White House released 50 million barrels of SPR in November last year in an attempt to suppress soaring energy prices. India, Japan, South Korea, and China also followed suit. At that time, West Texas crude oil futures were regarding 74 per barrel. Dollar。
Energy prices are the main driver of U.S. inflation. The White House advocates that the release of the SPR successfully reduced gasoline prices by 10 cents per gallon following the U.S. entered the peak holiday travel season, but U.S. consumer price inflation has not stopped rising since then. , threatening the Democratic advantage in the House and Senate.
Analysts predict U.S. gasoline prices might rise to as high as 4 per gallon amid Russia-Ukraine crisis Dollar. The average daily price of regular unleaded gasoline in the U.S. was at 3.54 per gallon on Wednesday, according to the American Automobile Association (AAA). Dollar。
The U.S. now has 584.8 million barrels of SPR, the lowest level since September 2002, according to data as of Feb. 11.
