October 19, 2022
CBS Boston recently published an article featuring Jay Zagorsky, Clinical Associate Professor, discussing President Joe Biden’s decision to release oil from the strategic reserve.
President Joe Biden has announced that 15 million barrels from the Strategic Petroleum Reserves will be released in December. This completes the 180-million-barrel commitment he made back in March when the Ukraine war began threatening international oil imports. A second part of Biden’s announcement laid out how the U.S. will fill the reserve, currently sitting half empty with roughly 400 million barrels stored.
When prices drop to around $72 a barrel, Biden said the United States will start buying back fuel. Jay estimates this could result in $3-to-4 billion profit for the United States. He states, “The United States uses about 20 million barrels of oil a day. President Biden’s 15 million commitment will be spread over 30 days, averaging about half a million barrels a day. It adds a little but not very much.”