Biden announces release of oil reserves following Saudi-backed oil cut

Biden announces release of oil reserves following Saudi-backed oil cut

US President Joe Biden said today that the United States will sell 15 million barrels of oil from its reserves. 

"After seeing gas prices rise over the past few weeks, they're falling again. That’s progress," said Biden on Twitter. "But they’re not falling fast enough and families are hurting."

The move comes weeks ahead of the US midterm elections, in which Biden’s Democratic Party hopes to retain control of the Senate and House of Representatives. 

Why it matters: Biden’s decision follows Saudi Arabia, Russia and other members of the so-called OPEC+ alliance agreeing earlier this month to cut oil production by 2 million barrels per day starting in November. Saudi Arabia had expressed concern about oil price fluctuations in the lead-up to the decision and has said the decision was motivated by economic factors. The White House quickly accused Saudi Arabia, which is the largest producer in the cartel, of seeking to benefit Russia by reducing production. Less oil production can lead to higher prices. 

Other major oil producers in the Middle East, such as Iraq and the United Arab Emirates, this week publicly backed Saudi Arabia in the dispute. 

Some analysts do not think Biden’s decision will lead to any decrease in fuel prices