UPDATED 8:30 AM PT – Wednesday, July 27, 2022
The Biden administration is releasing more oil from the Strategic Petroleum Reserve (SPR) after a failed effort to increase supply from Saudi Arabia. In a statement Tuesday, the White House said the Department of Energy would sell another 20 million barrels of oil from the reserves to stabilize the gas market.
President Joe Biden’s officials also pointed out gas prices have continued to fall. These sentiments came despite economists saying gas prices are falling because of concerns of recession, while most of SPR oil has been exported to Europe and China. This comes as natural gas prices in Europe are hitting new record highs as a result of anti-Russian sanctions.
“The most crucial outcome is that we will start saving gas now and that we have a blueprint to act together in a coordinated way if the situation worsens,” said EU Energy Commissioner Kadri Simson. “Reducing gas demand proactively allows us to avoid rushed or unilateral decisions when it is too late. It will make it possible to plan the savings in the most efficient way.”
💠It is extremely important to explain our new “Save gas for a safe winter” package together with European Gas Demand Reduction Plan to the general public.
💠We need their support & everyone can do their part. pic.twitter.com/smIgsQuYey
— Kadri Simson (@KadriSimson) July 21, 2022
A number of European countries have already asked Biden for more oil and gas going into the winter season amid fears that Russia may shut off the supply.