Oil prices fell sharply amid information about the Biden administration’s intention to release additional volumes from the U.S. strategic reserve to the market to stabilize energy prices, reports CNBC.
Major oil benchmarks have declined by 5-6%. Cost of West Texas WTI reached $101 a barrel. The price tag on North Sea Brent fell to $106.
According to Bloomberg and Associated Press, we are talking about an additional supply of 1 million barrels per day. Agency sources do not report about the duration of the intervention, but suggest that we are talking about several months. The final decision and details on this issue will be announced by U.S. President Joe Biden on Thursday, March 31.
The White House is preparing for the move amid the U.S. president’s lowest rating during his tenure, the highest inflation rate in 40 years, and record gasoline prices.
According to the U.S. Department of Energy data as of March 25, the United States has oil reserves of 568 million barrels.
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