According to recent reports, President Biden’s decision to tap the U.S. Strategic Petroleum Reserve will supply oil to China and India as global shortages have resulted in high demand for gas.


According to the White House, 50 million barrels of oil will be released by the Department of Energy from U.S. Reserves. 18 million of these have been approved for sale by Congress. China and India are actively buying U.S. sour crude oils produced in the Gulf of Mexico.


Sour crude oil is high in sulfur. This makes it more costly to process and can lead to buyers being turned away. The publication stated that U.S.-produced sour crude oil is attractive to foreign buyers due to its affordable price.


In an effort to combat rising gas prices, the White House announced that the U.S. would accelerate its sales abroad. To ease increased demand, the additional 32 million barrels will go to American consumers.


Earlier in the month, OPEC+, which is led by countries like Russia and Saudi Arabia, refused to increase production to satisfy rising demand. Due to gas shortages, inflation has risen and prices at the pump have not been seen in seven years.


The White House released a statement saying that the President had been working with countries around the globe to address the shortage of supplies as the world emerges from the pandemic. China, India, and South Korea will all tap their gas reserves in a coordinated global effort to lower gas prices.


The administration stated that the president is available to take additional actions if necessary and was prepared to use all his authority working in coordination with other countries to ensure adequate supply once we have ended the pandemic.
