LONDON (Reuters) – The White House said on Tuesday it would make 50 million barrels of oil available from the U.S. Strategic Petroleum Reserves as part of a coordinated effort with other major economies to help cool oil prices.
MARKET REACTION
Brent crude futures were up 21 cents, or 0.26%, to $79.91 a barrel by 1229 GMT, after earlier dropping to $78.55 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were down 33 cents, or 0.43%, at $76.42.
WHITE HOUSE ON OIL RESERVES RELEASE
“American consumers are feeling the impact of elevated gas prices at the pump and in their home heating bills, and American businesses are, too, because oil supply has not kept up with demand as the global economy emerges from the pandemic. That’s why President Biden is using every tool available to him to work to lower prices and address the lack of supply.
ENERGY SECRETARY JENNIFER GRANHOLM
“As we come out of an unprecedented global economic shutdown, oil supply hasn’t kept up w/ demand, forcing families & businesses to pay the price. This action underscores @POTUS’ commitment to using the tools available to lower costs for families & continue our economic recovery.”
U.S. SENATOR JOHN BARRASSO, RANKING REPUBLICAN ON SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES
“President Biden’s policies are hiking inflation and energy prices for the American people. Tapping the Strategic Petroleum Reserve will not fix the problem. We are experiencing higher prices because the administration and Democrats in Congress are waging a war on American energy.
“President Biden has either eliminated or severely restricted access to America’s oil and natural gas resources on federal lands and waters. At the urging of Democrats and environmental activists the investment banking industry has also withheld capital from companies looking to produce U.S. oil and natural gas. Begging OPEC and Russia to increase production and now using the Strategic Petroleum Reserve are desperate attempts to address a Biden-caused disaster. They’re not substitutes for American energy production.”
SENATE MAJORITY LEADER CHARLES SCHUMER
“President Biden’s announcement is good news for American families and will strengthen our economy. Tapping the SPR will provide much-needed temporary relief at the pump and will signal to OPEC that they cannot recklessly manipulate supply to artificially inflate gas prices. Of course, the only long term solution to rising gas prices is to continue our march to eliminate our dependence on fossil fuels and create a robust green energy economy.”
FORMER U.S. PRESIDENT DONALD TRUMP
“I understand that Joe Biden will be announcing an ‘attack’ on the newly brimming Strategic Oil Reserves so that he could get the close to record-setting high oil prices artificially lowered. We were energy independent one year ago, now we are at the mercy of OPEC, gasoline is selling for $7 in parts of California, going up all over the Country, and they are taking oil from our Strategic Reserves. Is this any way to run a Country?”
REPUBLICAN REPRESENTATIVE BYRON DONALDS
“The fact that @POTUS is releasing 50M barrels of oil from our strategic reserve proves how ridiculous his energy policies have been. America was energy independent and thriving. Relying on OPEC, so he could be the green new deal POTUS, was dumb from the beginning!”
(Reporting by Katharine Jackson; Editing by Heather Timmons and Chizu Nomiyama)
