President Joe Biden is authorizing the release of 50 million barrels of oil from the US petroleum reserve in a bid to combat the spike in gas prices.
“Today, the President is announcing that the Department of Energy will make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve to lower prices for Americans and address the mismatch between demand exiting the pandemic and supply,” the White House said in a Tuesday statement.
Other countries including China, India, Japan, South Korea, and the UK were also planning to release oil from their reserves, the White House said.
The average price for a gallon of gas recorded in November — $3.38 — was the highest since 2013, NBC News reported, citing the Energy Information Administration.
As Insider’s Andy Kiersz has reported, the US demand for gas increased as the economy opened and Americans started driving more, while supply remains constricted due to lower US production and overseas oil exporters repeatedly agreeing to only modest increases in production.
This story is developing. Please check back for updates.