Biden announces that the US and 30 other countries will release 60 million barrels of oil to cool surging prices

• Biden on Tuesday announced the US and other countries will release 60 million barrels of oil from reserves.
• The move aims to shore up oil supply and help cool soaring gasoline prices around the world.

The US and 30 other countries will release 60 million barrels of oil from strategic reserves to help counter pressures driving gas prices higher, President Joe Biden announced Tuesday.

"Tonight, I can announce that the United States has worked with 30 other countries to release 60 million barrels of oil from reserves around the world," Biden said during his State of the Union address on Tuesday.

The US will account for half of that release and bring 30 million barrels of oil to the market, the president said, adding "we stand ready to do more if necessary, united with our allies."

The US's release will come from the Strategic Petroleum Reserve, a network of underground oil storage units that's meant to stabilize oil supply in times of need. The reserve held more than 582 million barrels of crude oil in the week that ended February 18, according to the US Energy Information Administration.

The release can happen in as little as 13 days following a presidential order, according to the Office of Fossil Energy and Carbon Management.

The move comes as US gas prices sit at their highest levels since July 2014. The average price per barrel rose to about $3.61 in the week that ended Monday and now sits nearly $0.90 higher than levels seen one year ago.

Soaring gas prices have been one of the biggest drivers of heightened inflation throughout the pandemic. By releasing oil from the strategic reserve, the Biden administration aims to better match Americans' strong demand with additional gasoline supply.

Russia's invasion of Ukraine added even more risks to the outlook. Russia is the world's second-largest producer of crude oil after the US, and sanctions imposed on the country have raised concerns about the global oil supply coming under more pressure.

Biden addressed such worries on Tuesday, saying the SPR release will help counter upside risk to gas prices at the pump.

"These steps will help blunt gas prices here at home," Biden said. "I know the news about what's happening can seem alarming to all Americans. But I want you to know that we are going to be okay."

To be sure, the US release of 30 million barrels would represent a relatively small share of oil production and demand. According to the Energy Information Administration, the US consumed an average of about 18 million barrels per day in 2020, meaning that the newly announced release would cover less than two days of domestic demand.

The latest move follows a release of 50 million barrels from the reserve that Biden announced in November. That release was similarly meant to curb further price spikes, and was part of a coordinated release between the US, UK, Japan, India, China, and South Korea.