The United States plans to release another 10 million to 15 million barrels of oil from the country’s emergency stockpile in a bid to balance markets and keep gasoline prices from climbing, a Bloomberg reporter said.
The White House also plans to replenish the U.S. strategic petroleum reserve, the tweet said.
Three sources familiar with the matter said that 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.
The sale would market the remaining 14 million barrels from Biden's previously announced, and largest ever, release from the reserve of 180 million barrels that started in May.
The administration has also spoken with oil companies about selling an additional 26 million barrels from a congressionally mandated sale in fiscal year 2023, which began Oct. 1, a fourth source said.
The administration has spoken with energy companies about buying back oil through 2025 to replenish the SPR, the sources said, after Biden in March announced the biggest sale ever, 180 million barrels, from May to October.
The Energy Department still has about 14 million barrels of SPR oil left to sell from the historic release, because selling was slowed in July and August by holidays and hot weather.
In May, the DOE said it would launch bids late this year for a buy-back of about one third of the 180 million barrel sale. It suggested then that deliveries would be linked to lower oil prices and lower demand, likely after fiscal year 2023, which ends Sept. 30 next year. Two sources said the buy-backs could continue through 2025.
