The US government is considering boosting the country’s oil reserves by releasing a million barrels a day, amid the continuous increase in prices. USO is down 3.95% premarket.
- Sources close to the matter said the Biden administration is looking at a total release of 180 million barrels, with the International Energy Agency is also looking to coordinate a global release in other countries, with the US expected to make an announcement Thursday.
- The Organization of the Petroleum Exporting Countries and its allies have rejected proposals to boost output to cut down global prices, insisting on sufficient supply. They are also set to meet on Thursday, with the market anticipating a slight increase in supply.
- US President Joe Biden is scrambling to tame inflation with the midterm elections scheduled in November. He already mandated the release of two major releases from the reserves in the past six months, 50 million barrels in November and another 30 million in March.
USO is down 3.95% premarket.