The Biden administration once again decided to sell 20 million barrels of oil from the Strategic Oil Reserves in order to bring energy prices down ahead of the midterm elections.
Recently, the federal government sold nearly 45 million barrels of oil to different countries, including China.
Biden to Sell More Strategic Oil to Foreign Countries
According to a statement released by the White House, the United States and its international partners released a significant amount of oil, which has contributed to bringing oil prices down by 40 cents for Americans.
While gas prices have come down from their recent peak of more than $5 per gallon, the average gas price was still standing at $4.327 on Tuesday, compared to $3.156 at the same time last year.
When Biden took office, the national gas price average was nearly $2.39 per gallon.
This latest sale from the SOR came at a time when Republican lawmakers were already pointing toward the Biden administration’s attempt to sell the oil to different European and Asian nations, including China.
The company which bought the oil from the US had business ties to Hunter Biden. This prompted many Republican lawmakers to question the transparency of the dealings.
Republican Congresswoman Marjorie Taylor Greene asked Congress to impeach the president for this scandal, while Senator Chuck Grassley called the event “OUTRAGEOUS.”
JUST IN – US issues fifth emergency notice of sale of crude oil from the Strategic Petroleum Reserve, depletes another 20 million barrels.https://t.co/i2SG2KnLAq
— Disclose.tv (@disclosetv) July 26, 2022
GOP Congressman Cathy McMorris argued Americans need to know why national emergency assets are being sold to strategic adversaries of the United States, like the Chinese Communist Party.
White House Ready to Change Rules of Strategic Oil Acquisition
The White House also revealed the Department of Energy is proposing to change the rules to buy SOR.
Reportedly, the new rules will allow the federal government to purchase SOR on fixed-price contracts, as well as on index-price contracts. Currently, the government can only sign index price contracts.
So the White House noted the new rules, if approved, would bring market stability, which will eventually help the government to fill up the strategic reserves easily.
A senior official of the Biden administration told reporters the new rule would mean the administration could sign the deal with oil suppliers in advance at the existing oil rate.
This will ensure suppliers that their products will be in demand in the future, which will eventually bring more investments into the oil and gas sector.
The US Strategic Oil Reserve has dropped to levels not seen since 1984. The GCC is pumping at max output. Europe will likely resort to fuel rationing. The postcolonial world is ditching the US petrodollar. The end is nigh. pic.twitter.com/jUctlw7rIY
— Jay 🇾🇪 (@JayTharappel) July 19, 2022
The oil reserves of the country have reduced to a historic low, due to the Biden administration’s continuous attempts to release oil to bring energy prices down.
Today, the SOR stands at a mere 475.5 million barrels, which is at its lowest level since 1985.
Some political commentators suggest President Biden is pushing to release more oil after his meeting with Saudi Crown Prince Mohammad Bin Salman, to whom the president requested to increase the domestic oil production.
So, now Biden is trying to show the prince that the US is also releasing oil, instead of completely relying on other nations.