U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices

U.S. President Joe Biden announces new actions against Russia for its war in Ukraine, during remarks in the Roosevelt Room at the White House in Washington, U.S., March 8, 2022.

The White House said on Thursday that the US will release 1 million barrels of oil per day from strategic reserves to help cut gas prices and fight inflation.

A fact sheet released by the Biden administration shows that the president will tap the nation's Strategic Petroleum Reserve for the next six months as domestic producers ramp up production. The document said that the move came after discussions with American partners.

The White House said in a release that the world has never had a release of oil reserves at this rate.

A senior administration official told reporters Thursday morning that the average daily oil release should be over 1 million barrels.

Reports Wednesday evening suggested that a move was imminent. President Joe Biden is expected to speak about efforts to bring down energy prices.

International benchmark crude oil futures fell 4% to trade at $108.89 per barrel. The contract traded as low as $100.16.

The White House is looking for ways to combat a spike in energy prices caused by Russia. While oil prices are well off highs seen earlier this year, the chaos in the Middle East has continued to raise the cost of oil and natural gas.

The recent rise in crude prices has led to a jump in domestic gasoline prices, with the national average for a gallon of gas up from a year ago.

More than 12 million acres of federal land and 9,000 unused but already-approved permits for production are being criticized by the White House.

President Biden is calling on Congress to make companies pay fees on wells from their leases that they haven't used in years and on acres of public lands that they aren't producing on.

A senior administration official said that the White House has been meeting with industry leaders to encourage producers to use already-approved land to increase U.S. capacity with mixed feedback.

The official said the industry needs to step up.

There are companies that say they are doing the right thing. Some people have said that it doesn't matter where the price point is, they're not going to produce more. They focus on returning dividends and distributions to shareholders.

CNBC's Pippa Stevens contributed reporting.

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