.ABC News Special Report: President Biden delivers remarks after tapping nation's strategic oil reserve to control gas prices. Watch live:
WASHINGTON -- President Joe Biden is ordering the release of 1 million barrels of oil per day from the nation's strategic petroleum reserve for six months, the White House said Thursday, in a bid to control energy prices that have spiked after the United States and allies imposed steep sanctions on Russia over its invasion of Ukraine.
Tapping the stockpile would create pressures that could reduce oil prices, though Biden has twice ordered releases from the reserves without causing a meaningful shift in oil markets. Stewart Glickman, an oil analyst for CFRA Research, said the release would bring short-term relief on prices and would be akin to"taking some Advil for a headache." But markets would ultimately look to see whether, after the releases stop, the underlying problems that led to Biden's decisions remain.
Americans on average use about 21 million barrels of oil daily, with about 40% of that devoted to gasoline, according to the U.S. Energy Information Administration. That total accounts for about one-fifth of total global consumption of oil. Sen. Steve Daines, R-Mt., blasted Biden's action to tap the reserve without first taking steps to increase American energy production, calling it"a Band-Aid on a bullet wound.
Oil producers have been more focused on meeting the needs of investors than consumers, according to a survey released last week by the Dallas Federal Reserve. About 59% of the executives surveyed said investor pressure to preserve"capital discipline" amid high prices was the reason they weren't pumping more, while fewer than 10% blamed government regulation.
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