During an industry conference, White House senior adviser John Podesta expressed the Biden administration’s commitment to ensuring affordable gasoline prices, indicating a willingness to utilize crude oil releases from the Strategic Petroleum Reserve (SPR) as necessary. In 2022, the administration executed the largest ever sale of 180 million barrels of oil from the reserve over a six-month period, aiming to mitigate the impact of rising gasoline prices following Russia’s invasion of Ukraine. However, this move drew criticism from Republicans and contributed to reducing the reserve’s levels to their lowest point in approximately 40 years.
Podesta emphasized President Biden’s dedication to maintaining affordable gasoline prices, referencing the previous release of oil from the SPR. While he refrained from confirming an imminent release, he underscored the administration’s commitment to taking action to achieve this goal.
In a related development, the U.S. Department of Energy has temporarily halted its oil repurchase for the SPR due to elevated oil prices. The department has previously stated its intention to acquire oil for the SPR at a price of $79 per barrel or below, a figure lower than the average of approximately $95 received during the emergency SPR sales in 2022. Energy Secretary Jennifer Granholm reiterated the administration’s desire to repurchase oil for the reserve, emphasizing the aim to do so at a rate that is advantageous for taxpayers.
Amid market concerns about the potential broadening of the conflict between Israel and the Palestinian militant group Hamas, oil prices have surpassed $79 a barrel. West Texas Intermediate oil futures were marginally above $85 a barrel on Tuesday, with economic challenges offsetting support provided by U.S. Treasury Secretary Janet Yellen’s announcement of the intention to impose new sanctions on Iran following its unprecedented attack on Israel.