China News Service, March 31 (Reuters) - The U.S. government is considering releasing a total of 180 million barrels of oil from the Strategic Petroleum Reserve (SPR) in the coming months in an effort to keep oil prices down, Reuters reported.
Data map: A car owner refuels at a gas station in San Mateo County, California.
Photo by China News Agency reporter Liu Guanguan
According to reports, this will be the third time the United States has used the strategic reserve in the past six months, and it will also be the largest release in the nearly 50-year history of the strategic oil reserve.
Previously, U.S. President Biden has twice ordered a large-scale release of U.S. oil reserves, including 50 million barrels in November 2021 and 30 million barrels in March 2022.
So far, the release of oil reserves has failed to push down prices as global oil demand has largely returned to pre-pandemic levels while supply remains short.
Oil prices have soared as the United States and its allies slapped tough sanctions on Russia, the world's second-biggest crude exporter, since the Russian military launched a special military operation in Ukraine.
Earlier in March, Brent crude prices surged to an average of $139 a barrel, the highest since 2008.
Regarding the release of the Strategic Petroleum Reserve, the White House said that Biden will deliver a speech on the afternoon of the 31st local time, including how the government will reduce the pressure caused by rising oil prices and how to reduce gasoline prices.
Data map: US President Biden.
In addition, Reuters quoted sources as saying that in addition to releasing more oil reserves, the U.S. government is also considering temporarily lifting restrictions on the sale of ethanol oil in summer to help U.S. consumers reduce the cost of oil prices.
Ethanol oil is made from corn and is cheaper than regular gasoline.