Biden was expected to announce his plan to develop oil reserves amid rising prices

President Joe Biden plans to tap US oil reserves as fuel costs continue to rise and Americans feel the pressure of inflation hitting a 40-year high.

Biden could announce as early as Thursday that he will order the daily release of up to 1 million barrels from the strategic oil reserve to counter high energy prices, sources told the Associated Press.

The plan was first reported by Bloomberg News.

The president on Thursday will discuss his administration’s efforts to get a grip on fuel prices, a day after crude prices hit nearly $105 a barrel — up from $60 a year ago.

At the pump, the national average per gallon of gasoline hit $4.33 on March 11, according to the AAA, its highest level since 2008. The average has since fallen to $4.24 on Wednesday as demand is likely to fall because of high prices forced consumers to change their driving habits, AAA said.

Russia’s invasion of Ukraine and subsequent sanctions by the US and its Western allies have been blamed for contributing to skyrocketing energy costs around the world, but oil producers have not ramped up production as prices have risen.

President Joe Biden
President Joe Biden could announce the release of oil reserves as early as Thursday.
Patrick Semansky/AP

A Dallas Federal Reserve poll of industry executives found that about 59 percent said pressure from oil company investors was the main reason production hasn’t increased, the AP reported.

The release of the reserves could take months, sources told the AP. The Biden administration agreed to release 50 million barrels from the reserve in November, then agreed to release another 30 million at the start of the Ukraine war in coordination with other nations.

As of March 25, there were more than 568 million barrels in reserves, the AP reported.

With postal wires Biden was expected to announce his plan to develop oil reserves amid rising prices


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