The White House announced Tuesday the President Joe Biden’s directive to the Department of Energy for 50 million barrels of oil from America’s strategic reserve. This was in the hope of lowering gas prices.
In a statement released Tuesday morningThe White House stated that 32 million barrels of the 50 million barrels from the reserve would “eventually” return in an exchange that will occur in the future. The 18 million barrels will “accelerate” the sale of oil, as Congress had previously approved.
The White House stated that current high gas prices were due to supply chain problems resulting from the COVID-19 pandemic.
Over the past year, the price of gasoline has risen in all parts of the country. According to AAAThe national average price for a gallon is now $3.40. This is up from the $2.11 average a year earlier.
Just days after the White House announced Tuesday’s move, Biden directed the FTC to investigate potential “illegal conduct”Gas and oil companies have been accused of anti-competitive behavior and kept prices higher than necessary.
Biden also pressured oil-rich nations around the globe to get involved pump more oilHowever, he has not made any progress.
Biden will speak Tuesday afternoon at White House about the economy.