The U.S. government has announced the release of 172 million barrels of oil from its Strategic Petroleum Reserve this week. This decision is the second-largest release in the reserve’s history, following former President Joe Biden’s withdrawal of 180 million barrels in 2022. The action aims to reduce oil prices, which reached over $100 a barrel due to the ongoing conflict in Iran.
Starting next week, the release will unfold over 120 days, bringing the nation’s reserves down to approximately 243 million barrels. This represents a significant drop of 41% from the current 415 million barrels, leaving the strategic stockpile at its lowest since 1982, according to a CBS News analysis.
Previously, in March 2022, President Biden ordered a major drawdown of 180 million barrels in response to rising gas prices linked to the war in Ukraine. In 2021, his administration also released 50 million barrels to tackle economic concerns.
The average price of a gallon of petrol in the U.S. was about $4.23 in March 2022. Currently, the price stands at $3.63, a rise of 22% from $2.98 before the conflict in Iran began.
U.S. Secretary of Energy Chris Wright stated that the country plans to replace the strategic reserves with about 200 million barrels over the next year. The Strategic Petroleum Reserve was established in 1975 to ensure energy security during crises.
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