Business News Asia
The U.S. Department of Energy said Monday (Aug. 1) that crude oil inventories in the United States fell by 4.6 million barrels last week to their lowest level since May 1985.
The information said that strategic crude oil stocks (SPR) fell to 469.9 million barrels in the week ending July 29.
U.S. President Joe Biden unveiled a plan in March to withdraw 1 million barrels of crude oil a day from strategic reserves over a six-month period to counter inflation-driven increases in oil prices.
Since May, an average of 880,000 barrels of oil per day has been drained. It has been sold to approved oil companies through online auctions, causing gasoline prices in the U.S. to drop by about 40 cents from pre-oil-drain levels.
The U.S. Department of Energy has proposed a scheme to return crude oil to strategic reserves. It will allow contracts to buy oil in future years at fixed and predetermined prices, which management expects to happen. This plan shall boost domestic oil production.