United States to sell oil reserves amid Russian oil cut -

Washington/ Moscow: Last week, Russia announced that it would cut its fuel production in response to sanctions imposed by the West. Russian Deputy Prime Minister Alexander Novak informed that Russia may reduce its crude oil production by 500,000 barrels per day from March. Due to this decision of Russia, the price of fuel oil may likely increase. The US Biden administration has taken an aggressive decision to prevent that from happening.

Moreover, to avoid increasing fuel prices in the United States, President Joe Biden announced to reopen the ‘Strategic Petroleum Reserve’ in the United States. According to President Biden’s decision, about two and a half million barrels of crude oil in the US fuel reserves will be available for sale. Currently, only 37 million barrels of crude oil are left in the United States’ fuel reserves. After fresh sales, it will come down to 34.5 crore barrels. This is the lowest level since 1983.

Furthermore, after assuming his responsibilities in office, President Joe Biden decided to open the ‘Strategic Petroleum Reserve’ four times. Last year, by the end of March, the Biden administration had decided to open about 18 million barrels of fuel reserves. After that, the fuel stock was released in the background of mid-term elections in November.

If US fuel prices go up, it could hit President Biden politically. Besides, President Biden and his colleagues know that if fuel prices rise, inflation will flare up and the anger of the American people against the Biden administration may increase. Thus, the Biden administration seems to be preparing to sell fuel reserves to prevent fuel price hikes.

मराठी हिंदी