The U.S. will continue to supply oil from the strategic reserve
The U.S. government will continue to supply oil to the market from the Strategic Petroleum Reserve (SPR) as needed and then replenish the reserve.
Amos Hochstein, a senior energy adviser, told CNN on Wednesday.
Hochstein said President Joe Biden will continue efforts to lower prices for U.S. consumers after energy prices spiked as a result of Russia’s invasion of Ukraine.
On Wednesday, Biden makes a statement on gasoline prices and announces another release of oil from the strategic reserve.
“Everything we’re doing today could continue, and we’ll see additional tranches from the SPR if necessary,” Hochstein said. – The president will also announce that we’re going to replenish the SPR.”
In addition to announcing a new allocation from the SPR, Biden will announce that the federal government plans to replenish the reserve by buying back oil it sold at $100 a barrel for about $70.
“And that’s critical because that’s what U.S. producers need to know in order to invest in increased production today,” Hochstein explained.