US weighs massive release of oil from emergency reserves to combat inflation: Sources

US weighs massive release of oil from emergency reserves to combat inflation: Sources

Oil prices have surged since Russia attacked Ukraine in February and the US and allies responded with hefty sanctions on Russia.

By Reuters Published: Thu 31 Mar 2022, 7:20 AM

The Biden administration is considering releasing up to 180 million barrels of oil over several months from the Strategic Petroleum Reserve (SPR), three US sources said on Wednesday, as the White House tries to lower fuel prices.

The move would mark the third time the United States has tapped its strategic reserves in the past six months, and would be the largest release in the near 50-year history of the SPR.

So far, the releases have not managed to lower prices as world demand has nearly reached pre-pandemic levels while supply has tightened globally.

Oil prices have surged since Russia attacked Ukraine in late February and the United States and allies responded with hefty sanctions on Russia, the second-largest exporter of crude worldwide. Brent crude, the world benchmark, soared to about $139 earlier this month, highest since 2008, and was near $110 a barrel in Asian trading on Thursday.

President Joe Biden will deliver remarks on Thursday on his administration's actions, the White House said.

Russia is one of the world's top producers of oil, contributing about