The strategic oil reserves of the US fell to their lowest level in 37 years last week as the releases continued.
In the week to Friday, the Department of Energy data shows that the strategic petroleum reserve fell to 454.1 million barrels. That's the lowest it's been in 25 years.
After the White House ordered the release of record amounts of crude oil, the stockpiles have fallen by more than 160 million barrels.
In March, Biden said that the US would release 1 million barrels of oil a day for six months as energy prices went up. In July, the White House said the US would release 20 million barrels.
The US wants other countries to release oil from their strategic reserves in order to boost supply. The International Energy Agency said non-US countries would open up 60 million barrels.
According to analysts, the releases have contributed to the sharp fall in oil prices over the last two months, although the main driver has been fears about a global economic downturn.
The price of crude oil has fallen from its June highs.
The price of gasoline in the US fell from over $5 a gallon in June to under $4 on Tuesday.
An estimated 260 million barrels of supply will be released to the global market by October as a result of the international agreements, according to a note written by Thomas Feltmate. The impact on prices can be underestimated.
Four major facilities in Texas and Louisiana hold the US strategic petroleum reserve. The Department of Energy sells oil from the reserves to the highest bidder.
The SPR had 727 million barrels of crude oil. According to the Energy Information Agency, the US consumed 20 million barrels of oil a day in 2021.
This fall, the Biden administration is likely to order 60 million barrels of oil for delivery, under a proposal to refill the stockpiles.
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