The US plans to release 180m barrels of oil its strategic petroleum reserve within months

Mr Biden has ordered the release of US oil reserves twice in the past six months, including 50m barrels in November another 30m in March, but has had limited effect on prices. The U.S. currently has about 568.3 million barrels of crude in reserve, the lowest level since May 2002, according to the Department of Energy.

Biden pledged last year to lower domestic gasoline prices this year, but he is under pressure rising oil prices, especially ahead of midterm elections in November.

The US has lobbied members of the Organisation of the Petroleum Exporting Countries to raise production in an effort to stabilise oil markets, but the cartel is expected to maintain plans for a gradual increase when it meets on Thursday.

Russia is one of the world's largest oil producers, exporting 4m to 5m barrels a day, accounting for about 10 per cent of the global market. The International Energy Agency said about 3 million barrels a day of Russian oil could be kept off the market April because of international sanctions buyers' avoidance of Russian oil.

But increasing oil production will take time. The US, the world's largest oil producer, is expected to become a net importer this year before regaining its status as a net exporter next year after production fell during the coronavirus pandemic.

Mr Biden spoke at 1.30pm EST on Thursday (1.30am Singapore time on Friday) about the administration's efforts to bring down energy petrol prices. The White House issued a statement in advance that he would announce a new oil release.

In the long run, boosting commercial production is the key to rebalancing the market, says Energy policy analyst Booker. "There are limited stocks of strategic oil, there are no limits to the flow of commercial oil," he said.

Washington (AP) The United States will release an average of 1 million barrels a day its strategic petroleum reserve over the next six months to combat rising gasoline prices supply shortages following Russia's invasion of Ukraine, the White House announced Thursday. The release is expected to amount to 180 million barrels, the third time since November last year that the U.S. has used its oil reserves the largest in 50 years since the establishment of the Strategic Petroleum Reserve system.

Global oil prices fell by more than $5 a barrel on news of a planned rerelease of U.S. reserves. The White House says President Joe Biden is acting in coordination with Allies partners around the world, expects others to follow suit.

The United States is acting in coordination with Allies partners around the world. Members of the International Energy Agency met on Friday to discuss a collective oil release. However, the release of strategic stockpiles is expected to be enough to calm the starved oil market, analysts said.

The White House said the record release would serve as a "bridge" before domestic production increases at the end of the year.

Mr Biden has ordered the release of US oil reserves twice in the past six months, including 50m barrels in November another 30m in March, but has had limited effect on prices. The U.S. currently has about 568.3 million barrels of crude in reserve, the lowest level since May 2002, according to the Department of Energy.

However, analysts believe the release of strategic stockpiles will fill the supply gap in the oil market. Josh Young, chief investment officer at asset manager Bison Interests, said: "Past experience has been that releasing strategic petroleum reserves temporarily depress oil prices, then market prices rise again due to lack of supply."

Members of the INTERNATIONAL Energy Agency will decide on a collective release of oil at a meeting Friday, a spokesman for New Zealand Energy Minister John Woods said. "The potential collective release level has yet been decided," the spokesman said. The meeting will determine the total amount to be released then distribute it among countries."

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Source: Lianhe Zaobao

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