Another 15 million barrels of crude oil reserves are released!The U.S. plans to announce details of its plans this week

Another 15 million barrels of crude oil reserves are released! U.S. plans to announce details of plans this week

Wall Street News Han Xuyang

Soaring gasoline prices also sounded the alarm for Biden’s midterm elections.

OPEC+ is unreliable, and the United States is ready to go into battle to alleviate the problem of high oil prices by itself.

Earlier this month, OPEC+, a coalition of oil-producing nations, announced a decision to slash output from November, angering the White House and sparking fears that oil prices could soar. Subsequently, the United States not only escalated the “war of words” with Saudi Arabia, but even demonstrated its determination to win the “oil price defense war” with practical actions.

The United States is preparing to release an additional 10 million to 15 million barrels of oil from the national emergency stockpile to prevent gasoline prices from climbing further, according to people familiar with the matter, according to media reports on Monday. This is part of a plan announced by the White House in late March to release a record 180 million barrels of oil reserves.

This week, the U.S. government will provide details on plans to release emergency reserves. The U.S. Department of Energy announced in May that it planned to use a new form of repurchase that would allow for a “competitive, fixed-price bidding process” — prices that could be locked in before crude oil is delivered.

According to data compiled since 1982,Seasonal diesel inventories in the U.S. are set to hit record lows heading into winter.

In addition, two people familiar with the matter also said,The U.S. government is still considering restrictions on fuel exports,Keep more gasoline and diesel inside the U.S. But a decision won’t be made until Biden’s midterm elections in November, one of the people said.

The idea of ​​temporary export controls has divided the administration: Biden’s top energy adviser, Amos Hochstein, supports the new export controls, while Deputy Energy Secretary David Turk has expressed concerns about them, people familiar with the matter said.

DOE and White House officials have been privately meeting with oil companies such as Exxon Mobil and ConocoPhillips on Monday to inform them of possible problems and ask them to encourage gasoline and diesel production, media reports said.

Oil industry representatives and third-party energy analysts warned that,Restricting fuel exports could lead to higher oil prices in parts of the United States, especially in the import-dependent Northeast.

The White House has been trying to ease the surge in oil prices and build up fuel inventories for the winter. After the OPEC+ decision to cut production earlier this month, Biden told the media he would respond to the move, with “consequences” for Saudi Arabia. National Security Council spokesman John Kirby made it clear earlier that the White House was reassessing the relationship between the United States and Saudi Arabia.

The Saudi foreign ministry also issued a long statement in response to the angry accusations of the U.S. government, saying that the decision to cut production was “purely” based on economic considerations. Analysts believe that Saudi Arabia’s rare statement and the White House’s subsequent refutation indicate that the relationship between the two countries has become extremely tense.

Inflation in the United States is in full swing, and gasoline prices are one of the “behind the scenes”, which also indirectly affects Biden’s upcoming November midterm elections. Biden has also repeatedly warned oil companies not to raise costs in recent weeks.

The prospect of tighter supply from OPEC+ has helped oil prices recover from their recent slump. Oil posted its biggest weekly gain since March in the week after the decision to cut production was announced. As of now, WTI crude oil is at $84.67 per barrel, while Brent oil has risen to $90 per barrel.

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Responsible editor: Li Tiemin