In an appearance at the White House on Tuesday, Granholm said the administration is trying to blunt the financial burden of drivers during the winter and touted the $2.2 trillion climate and social spending legislation before the Senate as a means of breaking out of turbulent fossil energy expenses. The administration said the sale of 32 million barrels would take place in December and the sale of the 18 million barrels would occur “no sooner” than Dec.
“If the Biden administration wants to carry out a green transition, they’re going to need voter buy-in, and that’s hard to secure when people are upset about pump prices.”
“The real issue is I think not one of economics in the end but politics,” Book said. Kevin Book, a managing director at the research firm ClearView Energy Partners, said the release could translate to a roughly 14-cents-a-gallon decrease in prices, but that oil markets had already priced in 4 of those 14 cents in anticipation of the sale.īook said even that 10-cent reduction might not reach drivers immediately, and it remains unclear what OPEC countries will do about their own production when they meet in December. The announcement comes after congressional Democrats urged Biden to direct a sale from the national crude oil stockpile to ease driving and heating costs during the holiday period, though market experts said the effect would be minimal.ĭOE said it is coordinating its sale with “other major energy-consuming nations including China, India, Japan, South Korea and the United Kingdom,” in an effort to increase global supply. “As we come out of an unprecedented global economic shutdown, oil supply has not kept up with demand, forcing working families and businesses to pay the price,” Granholm said. will make up to 32 million barrels of crude oil available and will sell an additional 18 million barrels of oil, as Congress mandated in budget legislation in 2018, the Energy Department said.Įnergy Secretary Jennifer M. Granholm said the administration is trying to lower costs for the public and boost the nation’s economic recovery from the COVID-19 pandemic. In an effort coordinated with other nations, the U.S. braces for a busy holiday travel period, the Biden administration's decision Tuesday to sell 50 million barrels from the Strategic Petroleum Reserve should lower gasoline prices in the short term, analysts said.
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