A person familiar with the White House deliberations says that President Biden is considering a plan to release one million barrels of oil a day from the Strategic Petroleum Reserve for as long as 180 days, a move that would add a large amount of oil to the global market.
The plan to tap the reserve could be announced by Mr. Biden as soon as Thursday, said the official, who requested anonymity because the plan was not ready to be announced Wednesday night. The aim would be to bring down the prices at the pump.
The president's public schedule said he would speak on the actions the administration has taken to reduce the impact of Putin's price hike on energy prices and gas prices.
The price of West Texas Intermediate, the American crude oil benchmark, fell about 4% after the plan was reported. The price of crude was 3.5 percent lower.
The president's plan to release 180 million barrels from the reserve is intended to help the United States weather spikes in demand or drops in supply. The total capacity of the reserve is 714 million barrels.
Mr. Biden has been under increasing political pressure for months as the price of gasoline has steadily risen, in part because of instability created by Russia's invasion of Ukraine and five weeks of fighting there.
The average price of a gallon of gasoline this month was $4.17, passing the previous peak of $4.11 set in 2008, which is not adjusted for inflation. The rising cost of gas has made it harder for Americans to recover from the two-year Pandemic.
David Goldwyn, a top State Department energy official in the Obama administration, called the plan a good move.
In November, Mr. Biden released 50 million barrels from the reserve, which many experts said was too small to significantly increase the global supply of oil or bring down prices at the pump. On March 1, Mr. Biden announced the release of a further 30 million barrels, in coordination with a release of an additional 30 million barrels from other countries around the world.
The price of gas has continued to go up, and the political pressure has not let up.
Republicans intend to use the spectre of inflation and rising gas prices as a political cudgel against Democrats this fall, and they have been hammering Mr. Biden for weeks.
What is inflation? Your dollar will not go as far tomorrow as it did today because of inflation. The change in prices for everyday goods and services is known as the annual change in prices.
What causes inflation? It could be due to increased consumer demand. Some developments, such as limited oil production and supply chain problems, can cause inflation to rise and fall.
Is inflation bad? It depends on the situation. Moderate price gains can lead to higher wages and job growth.
Can inflation affect the stock market? inflation can cause trouble for stocks. During inflation booms, financial assets have been bad, while tangible assets have held their value better.
White House officials have argued that Republicans are blocking the president's legislative efforts to lower costs on things like child care, health care, education and other core expenses.
Domestic oil companies were blamed for failing to expand production to meet demand and relieve pressure on prices. The White House press secretary made that point two weeks ago.
The oil and gas industry is making windfall profits. She said that too many companies are making the calculated decision of returning money to investors and shareholders through buybacks.
The US consumes 20 million barrels of oil a day. High energy prices have contributed to high inflation and pushed the Organization of the Petroleum Exporting Countries, Russia and others to pump more oil.
Mr. Biden's release of 50 million barrels barely affected the market. The world consumes 100 million barrels of oil a day, and prices are set in this global market. The oil was released in coordination with other world governments.
Underground caverns in Texas and Louisiana hold the emergency stockpile. The reserve was established after the 1973-74 oil embargo by Arab members of the Organization of the Petroleum Exporting Countries, and has been used in emergencies like the Persian Gulf war in 1991 and the aftermath of Hurricane Katrina in 2005.
Krauss contributed to the report.
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