US Biden Aministration to open US strategic Oil Reserves due to rising inflation & Ukraine Conflict

Washington: – The Biden administration has again indicated the opening of the ‘Strategic Petroleum Reserves’ ban on Russian fuel imports given the Ukraine conflict and rising inflation. An announcement to that effect is expected on Thursday. This is the third time in the last five months that the United States has used the Strategic Petroleum Reserve. The Biden administration had opened reserves in November 2021 and the first week of March.

Given the Ukraine conflict, the United States and its allies have imposed heavy sanctions on Russia. The sanctions also include Russian fuel and the United States, Britain and Canada have stopped importing Russian fuel. As a result, crude oil prices have sky-rocketed in the international market, reaching a 14-year high. Its impact has also been felt in the US economy, with US fuel prices reaching five to six dollars per gallon. The Biden administration faces a lot of wraths given this record increase in fuel prices.

The Biden administration had called on the Gulf states to increase fuel production to reduce the discontent in the US population. OPEC members, however, refused to increase production, taking a stand in support of Russia. As a result, the Biden administration is in deep trouble, with no option but to use the Strategic Petroleum Reserve. An earlier decision in November had opened up 50 million barrels of fuel. In a decision taken in March, 30 million barrels of fuel were released.

However, around 180 million barrels of fuel have been indicated to be opened this time. White House sources said that the fuel would be released at 1 million barrels per day. This will be the first time in the history of the US Strategic Petroleum Reserve that such a large amount of fuel will be released. The US Strategic Petroleum Reserve has 568 million barrels of reserves. According to the US Department of Energy, this is the lowest level in the last two decades.

According to New Zealand’s Fuel Minister, some members of the International Energy Agency and the United States may also decide to open up fuel stocks. Meanwhile, following the indications given by the United States regarding the release of Strategic Petroleum Reserves, the fuel prices have declined by nearly $4 to $5 per barrel, reaching below $110 per barrel.