The U.S. government is considering another release of oil from its emergency reserves as prices continue to surge following Russia’s invasion of Ukraine, according to media reports.
The specific amount is being discussed among top aides to U.S. President Joe Biden, but it would likely be more oil than the 30-million-barrel release announced by the U.S. earlier this month in an effort to stabilize prices at the gas pumps.
The U.S. and other major economies this week discussed oil supply and the potential for another round of releases, Biden’s top national security aide said on March 25, raising the prospect of new government interventions to ease supply constraints.
A White House spokesperson said over the weekend that President Biden is very concerned about gasoline prices and wants to do what he can to mitigate them. A number of ideas are on the table, but no decisions have been made, the spokesperson said.
The consideration of a new release from the reserve comes as the U.S. national average for retail prices is above $4 U.S. per gallon, with near record-high prices raising political alarm bells for President Biden and Democrats heading into the mid-term Congressional elections this fall.
The average price for a gallon of regular unleaded gasoline was $4.24 U.S. in American last week, according to auto club AAA.
Oil prices have rallied over the last four months with West Texas Intermediate (WTI) crude for May delivery trading a $111.01 U.S. in New York trading. Brent crude oil for May settlement was trading at $117.36 U.S. per barrel.
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