The Biden administration announced the release of more crude from the U.S. Strategic Petroleum Reserve on Wednesday, but analysts don’t expect such a move to lead to a significant fall in gasoline prices at the pump. President Joe Biden on Wednesday said his administration plans to release 15 million barrels of oil from the SPR to complete the historic drawdown of 180 million barrels he announced in the spring. He added that the federal government will purchase oil to refill the SPR when prices fall to $70 a barrel.
Read: Biden defends his release of oil reserves from criticism that it’s politically motivated Biden had announced in late March that he was authorizing the release from the SPR of 1 million barrels of oil per day for the next six months, for a total of more than 180 million barrels. That was described as the largest-ever release from the emergency oil reserve. “Transferring SPR crude oil from emergency reserves to commercial tanks now would likely not help in lowering retail gasoline prices, or do so only marginally,” Brian Milne, product manager, editor, and analyst at DTN, told MarketWatch. “Such a policy does not make sense.”
“ “Transferring SPR crude oil from emergency reserves to commercial tanks now would likely not help in lowering retail gasoline prices, or do so only marginally.””
— Brian Milne, DTN