WASHINGTON (Reuters) – US President Joe Biden’s administration has spoken with energy companies as it plans to use strategic oil reserves (SPR) to lower fuel prices and support long-term demand for producers. said two sources familiar with the matter.
The discussions, which once again involve tapping into the country’s strategic reserves and setting the timetable for oil buybacks, reflect the government’s willingness to fight against rising pump prices without harming national energy groups.
Rising gasoline prices have helped push inflation to the highest level in decades, a risk for President Joe Biden and the Democrats ahead of the November 8 mid-term elections, during which they will try to maintain majority in the Senate and the House of Representatives.
The Biden administration spoke to energy companies about buying back oil by 2025 to replenish the reserve, the sources said.
The president announced last March a plan to release up to 180 million barrels from the SPR between May and October, the largest draw ever from his strategic reserve, to lower fuel prices.
The US is also preparing to release an additional 40 million barrels of oil from its strategic reserve, which could be announced soon, a third source said.
“The administration has a small window before the midterm elections to try to lower fuel prices, or at least show it is trying,” said a source familiar with White House deliberations.
The average price of gasoline in the United States reached about $ 3.89 per gallon on Monday (a gallon is about 3.78 liters), about 20 cents more than a month ago and 56 cents less than a year ago. according to the AAA automobile association.
The White House and Department of Energy did not immediately respond to requests for comment on talks with energy companies.
(Reported by Jarrett Renshaw, Timothy Gardner and Laura Sanicola; French version Diana Mandiá, edited by Kate Entringer)
