The Biden Administration is considering another release from the Strategic Petroleum Reserve to combat a sharp rise in oil prices amid rising tensions between Russia and Ukraine and fears that prices will go even higher if Russia launches a large-scale invasion, triggering additional Western sanctions.
There is a display of gasoline prices at a gas station in Los Angeles.
The Reserve is certainly on the table, according to White House press secretary Jen Psaki.
The price of West Texas Intermediate crude was around $92 a barrel Wednesday afternoon, down slightly from a Tuesday peak of $96 a barrel.
The price of international benchmark crude was just under $97, which was just below a seven-year high on Tuesday of more than $100, also up 41% over the same period.
Russian President Vladimir Putin moved Monday to recognize two Russian-backed states in eastern Ukraine and deploy troops into them to serve as peacekeepers.
President Joe Biden ordered sanctions against the company that built the $11 billionNord Stream 2 undersea gas line between Russia and Germany after Germany blocked its approval. The decision caused European natural gas prices to spike around 10%, though Putin has pledged he does not plan to cut off any existing gas supplies to Europe. There will be more sanctions if Russian troops move deeper into Ukraine.
Biden ordered the release of 50 million barrels of oil in November to deal with surging gasoline prices in the U.S., which appeared to put a damper on them. The average price for a gallon of gas in the US has gone past the fall high in the past few weeks.
The 18.4 cent per gallon tax on gasoline could be suspended by the Democrats.
Democrats propose a gas tax holiday to combat rising prices.
Russia allows Putin's request for military deployment outside of Russia.
Biden allows sanctions to proceed.
Biden wants to use the strategic oil reserve to lower gas prices.
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