As part of an international effort to slow rising oil prices, President Joe Biden declared Tuesday that the U.S. will tap its Strategic Petroleum Reserve (SPR).
The first of this kind, it has been co-ordinated with India and China as well as Japan and the Republic of Korea. The SPR will allow 50 million barrels to be released of crude oil.
“The President stands ready to take additional action, if needed, and is prepared to use his full authorities working in coordination with the rest of the world to maintain adequate supply as we exit the pandemic,” the White House said in a statement.
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Since months, the administration has said that it is looking at all options to help calm the market. CNBC reported Monday that the national average cost of a gallon gas was $3.409, up from $2.11 last year.
Oil prices plummeted during this lockdown. Despite White House requests to increase output, OPEC oil producers deliberately slowed down production to prevent another contraction.
However, the demand for crude oil has risen dramatically since then. The BBC reports that prices have reached a seven year high. It has also led to higher fuel prices in the U.S. as well as other countries.
While experts are unsure about the impact this move will have on consumers it is still considered a step in the right direction to demonstrate to OPEC member countries that the U.S. will be taking serious steps to reduce energy prices.
“We will continue talking to international partners on this issue,” a senior US administration official told reporters. “The president stands ready to take additional action if needed, and is prepared to use his full authorities working in coordination with the rest of the world.”
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