WASHINGTON, Oct 18 – PRIME The Joe Biden administration plans to further sell oil from strategic reserves to slow down the rise in fuel prices ahead of the November congressional elections. This was announced on Monday by sources.
Analysts expect US industrial production to rise in September
Earlier this year, the Biden administration announced the largest sale of oil from strategic reserves in history: the US planned to sell 180 million barrels of oil over a six-month period starting in May. It is likely that the remaining 14 million barrels will be released this week. In July and August, sales of oil from strategic reserves slowed down due to public holidays and hot weather.
One source also says the government is in talks with oil companies for a congressional-sanctioned sale of an additional 26 million barrels of oil in fiscal year 2023, which began Oct. 1.
The US Department of Energy will publish more detailed information about a possible buyback of oil. This measure indicates the intention of the White House to contain the rise in fuel prices and to support American mining companies.
The US government has expressed its intention to buy oil from US companies until 2025 to replenish strategic reserves, the sources add.
The average U.S. gasoline price hit $3.89 a gallon on Monday, up about 20 cents from a month ago and 56 cents more than the same period last year, the American Motorist Association (AAA) said. In June, the average price of a gallon of gasoline in the country hit an all-time high above $5.