Biden told his team to prepare for future releases of petrol reserves
In the face of such a decision, the future of the US economy remains uncertain.
US President Joe Biden on Monday said he informed his team to be ready for potential future releases from the national Strategic Petroleum Reserve (SPR) in the coming months ahead for the administration to alleviate soaring oil prices.
"Independent analysts have confirmed that drawdowns from the reserve so far have played a big role in bringing down oil prices. So, we’re going to continue the responsible use of that national asset," Biden said during remarks on lowering gas prices.
"I’ve told my team to be prepared to look for further releases in the months ahead if needed. We’re calling it a ‘ready and release’ plan."
Biden further added that this strategy is intended to prevent oil price spikes and respond to international events.
When asked whether the decision to release additional oil from the strategic petroleum reserve was politically motivated, Biden responded "No it's not."
"It is making sure there's enough oil that's been pumped by the companies so that we have the ability to be able to produce enough gas that we need here at home, oil we need here at home," he added.
Biden further stressed that "We need to responsibly increase American oil production without delaying or deferring our transition to clean energy."
"You can increase oil and gas production now while still moving full speed ahead to accelerate our transition to clean energy."
The US president said he urged Congress to pass a bill reforming energy production so that energy costs can be alleviated.
He further stated that there are plans to continue resorting to the national Strategic Petroleum Reserve in order to offset larger fluctuations in oil prices, and called on companies to pass savings to consumers.
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Yesterday, the White House announced that the Energy Department issued a Notice of Sale for 15 million barrels from the Strategic Petroleum Reserve (SPR) to be drawed in December.
The new tranche of oil from the Strategic Petroleum Reserve will be "completing the 180 million barrel release authorized in the spring," in response to price hikes linked to Russia's military operation in Ukraine, a senior US official said Tuesday.
According to a person familiar with White House talks, Biden is looking to lower gas costs before the upcoming midterm elections. "The administration has a small window ahead of midterms to try to lower fuel prices, or at least demonstrate that they are trying," the unnamed source said.
"The White House did not like $4 a gallon gas and it has signaled that it will take action to prevent that again," they added.
Earlier today, a Bloomberg Economics model forecasted that a recession in the US is effectively certain within the next twelve months, during which it will hit a downturn reaching 100% in October 2023 compared to 65% within a comparable period during the 12-month estimate.
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