The United States Oil ETF traded higher by 2.4 percent on Tuesday after President Joe Biden announced he will be releasing oil from U.S. strategic reserves in an attempt to lower global gasoline prices.
What Happened
The White House said Tuesday the United States will release 50 million barrels of crude oil from its Strategic Petroleum Reserve (SPR). The decision is part of a coordinated effort with China, Japan, and other energy consuming nations to combat a rapid rise in energy prices. U.S. gasoline prices are currently near seven-year highs.Why It’s Important
The coordinated oil release includes United States, India, China, Japan, South Korea, and the United Kingdom and is the first of its kind in history.“The President stands ready to take additional action, if needed, and is prepared to use his full authorities working in coordination with the rest of the world to maintain adequate supply as we exit the pandemic,” the White House said in a statement.
