US says the supply of oil has not kept pace with demand during pandemic recovery, justifying tapping into reserves.
Oil fell after the U.S. announced a release from its emergency reserve — in tandem with several of the world’s biggest consumers — in a bid to cool gasoline prices and tame surging inflation.
The world’s largest economy is tapping its Strategic Petroleum Reserve after energy prices soared to multiyear highs, with a global energy crisis exacerbating the tightness in the oil market. China, India, Japan, South Korea and the U.K. will also make announcements, according to the White House.
Over the past month, U.S. President Joe Biden has urged other oil-consuming countries to tap their oil reserves after the OPEC+ coalition rejected requests to increase production. The U.S. will be releasing 50 million barrels, of which 18 million will be accelerated pre-approved sales, while 32 million will be exchanges over the coming months.