U.S. may increase oil sales from emergency reserve

The president's executive office intends to release at least another 10-15 million barrels of oil from the strategic reserve (SPR) in case of an emergency to balance markets and prevent further increases in gasoline prices.

Separately, the administration is still weighing fuel export restrictions to keep the bigger amount of gasoline and diesel in the United States. While no timetable has been set for a decision on this potentially more dramatic move, it will not happen until after the November midterm elections for Congress.

The idea of export controls, which would be temporary, has caused controversy in the administration. Biden's top energy adviser, Amos Hochstein, advocates for new export controls, whereas Deputy Energy Secretary David Turk expresses concerns.

Energy Department and White House officials have been quietly meeting this week with oil companies, including Exxon Mobil Corp. and ConocoPhillips, to let them know what to expect by continuing to encourage additional oil and fuel production.

Oil industry officials and outside energy analysts have warned that limiting fuel exports could lead to higher prices in parts of the U.S., especially in the import-dependent Northeast.

Gasoline prices, one of the most visible drivers of inflation, have been the focus of President Joe Biden, who has repeatedly warned oil companies in recent weeks.

«The price of fuel is still too high, and we need to keep working to bring it down», Biden said at an event in Los Angeles.

White House economic adviser Jared Bernstein said Biden has not yet decided on an additional SPR issue. The reserve is still more than half full, he told Fox News Sunday.

«The point is that there is an opportunity to use SPR to deal with some of the energy shocks that we're seeing in the world. But I'm not saying we will. That's for the president to decide, he hasn't made that decision yet», he said.