Quebec Standard

US government to put out 50 million barrels of oil from its strategic petroleum reserve to lower crude and gasoline prices

It is mentioned that the U.S. government has made a generous effort to lower crude and gasoline prices; towards it, the U.S. government will release 50 million barrels of oil from its strategic petroleum reserve onto the market.

The White House declared that the Department of Energy will release millions of barrels of hoarded oil to “address the mismatch between demand… and supply.”

The United States’ strategic petroleum reserve has about 600 million barrels of oil in store to secure supply amid natural catastrophes or other national security situations.

The reserves are kept in caverns carved out of salt domes along the Gulf Coasts of Texas and Louisiana. More than 32 million barrels will be released in the coming months, with the remaining 18 million being an acceleration of barrels that were previously set to be released in the future.

In a statement, Energy Secretary Jennifer Granholm added, “As we emerge from an unprecedented global economic shutdown, oil supply has not kept up with demand, forcing working families and businesses to pay the price.” “The president’s determination to use all means at his disposal to bring down costs for working families and maintain our economic recovery is exemplified by this move.”

Source: CBC News

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