Biden set to release oil from emergency reserve in bid to lower US fuel prices

theguardian.com:

The Biden administration plans to sell oil from the Strategic Petroleum Reserve in a bid to dampen fuel prices before next month’s congressional elections, three sources familiar with the matter have said.

Joe Biden’s announcement is expected this week as part of the response to Russia’s war on Ukraine, one of the sources said.

The sale would market the remaining 14m barrels from Biden’s previously announced, and largest ever, release from the reserve of 180m barrels that started in May.

The administration has also spoken with oil companies about selling an additional 26m barrels from a congressionally mandated sale in fiscal year 2023, which began October 1, a fourth source said.

The Department of Energy will also release further details on eventually buying the oil back, reflecting the White House’s desire to combat rising pump prices while supporting domestic drillers.

Rising retail gasoline prices have helped boost inflation to the highest in decades, posing a risk to Biden and his fellow Democrats ahead of the November 8 midterm elections, in which they are seeking to keep control of Congress.

Biden said last week gasoline prices are too high and that he would have more to say about lowering costs this week. David Turk, his deputy energy secretary, also said last week the administration can tap the Strategic Petroleum Reserve, or SPR, in coming weeks and months as necessary to stabilize oil.

“The administration has a small window ahead of midterms to try to lower fuel prices, or at least demonstrate that they are trying,” said a source familiar with the White House deliberations. “The White House did not like $4 a gallon gas and it has signaled that it will take action to prevent that again.”

Average US gasoline prices hit