The Biden administration is preparing to draw even more heavily on its strategic oil reserves in an effort to ease the pressure on energy prices by increasing the supply of black gold, according to American media on Wednesday evening.
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The White House is expected to announce a plan on Thursday to draw up to a million barrels a day from US strategic reserves, according to Bloomberg citing sources familiar with the matter.
The unprecedented initiative could last several months, while strategic reserves currently amount to 568 million barrels, according to the latest figures from the US Energy Information Agency (EIA).
The US administration has already been drawing on its strategic reserves continuously since November when the rise in oil prices took hold. Last week, these strategic stocks fell by another 3 million barrels.
Oil prices, which were already on an upward trend, soared with the invasion of Ukraine by Russia, one of the biggest players in the oil market. They are currently above 100 dollars against around 60 dollars a year ago.
Reacting to the prospect of this massive and unprecedented use of American strategic reserves, the price of a barrel of American WTI oil fell by more than 5% Thursday morning in Asia.
As inflation climbs in the United States and sanctions against Russia, the third largest oil producer, create concerns for global supply, the price of gasoline at the pump has exceeded its 2008 peak, well over above $4 per gallon (3.78 liters).