The Biden administration is buying 3 million barrels of oil in order to replenish strategic reserves that were drained earlier this year.
In March, the president withdrew 180 million barrels from the reserve, bringing the inventory to its lowest level in 30 years. The purchase will start to replenish the reserve and will be followed by more purchases.
The Energy Department said that the purchase was a good deal for American taxpayers since the price will be less than the average price. The replenishment will strengthen the U.S. energy security.
The benchmark West Texas Intermediate crude oil was selling for more than 70 dollars per barrel late Friday.
The average price of gasoline was $3.18 per gallon on Friday, down from $3.74 a month ago and just over $5 per gallon at their peak in June.
One of the few things a president can do alone to control the inflation that makes Americans poorer is to tap the reserve.
The price of oil was going up before Russia invaded Ukraine. The ban on Russian oil imports was announced by Biden in March.
In October, 180 million barrels were released. The Energy Department says the reserve contains 400 million barrels of oil.
After the 1970s Arab oil embargo, the United States was given a supply that could be used in an emergency.
Contracts for the purchase will be awarded in January and deliveries to the Texas site will be in February.
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