White House to release another 15mln barrels of oil from SPR
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President Biden aims to release up to 15 million barrels of oil from the United States emergency oil reserves in an effort to keep gas prices from skyrocketing.
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A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, on June 9, 2016. (Reuters)
US President Joe Biden plans to release up to 15 million barrels of oil from the country's emergency oil reserves to combat rising fuel costs. The oil release would be the latest portion of a deal struck last spring to release 180 million barrels of oil from energy companies.
Bloomberg reported that his administration intends to disclose the latest reserve release later this week. Biden said last week that gasoline prices are too high and he would discuss lowering the costs this week.
The President's Deputy Energy Secretary, David Turk, also stated last week that the government may use the Strategic Petroleum Reserve (SPR) to stabilize oil in the coming weeks and months if required.
The announcement of the plan to lower gasoline prices comes only weeks before the important midterm elections, which will put Biden's approval to the test.
Read next: OPEC+ to cut oil production by 2mln barrels per day
According to a person familiar with White House talks, Biden is looking to lower gas costs before the 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.
The AAA motor club said the average US gasoline prices were around $3.89 per gallon on Monday, up nearly 20 cents from a month ago and 56 cents from this time last year. Gasoline prices hit a record average above $5.00 in June.
The President's latest oil plans came after he said he would reassess the US' partnership with the oil-rich Saudis in exchange for their backing for Russia, a move that was guaranteed to raise gas prices shortly before the midterm elections.
After Biden warned of "consequences" for OPEC cutting oil production, Crown Prince Mohammed bin Salman's cousin issued a violent threat against those who "question" Saudi Arabia.
Read next: US lobbies Middle East allies to vote against OPEC+ oil production cut
A message directed at "the West" portrays Saud Al-Shaalan saying, ''Anybody who challenges the existence of this kingdom, we are all projects of jihad and martyrdom. Anybody that thinks they can threaten us."
His threat comes amid sky-high tensions between Washington and Riyadh after OPEC+ cut oil production by two million barrels per day and the Biden administration accused the Saudi Kingdom of aligning itself with Russia and Putin.
"There's going to be some consequences for what they've done with Russia," Biden said in a CNN interview aired last Tuesday. "I'm not going to get into what I'd consider and what I have in mind,' he added. 'But there will be - there will be consequences."
Read next: US oil reserves massively depleting
