Reports that President Biden plans to tap the nation's Strategic Petroleum Reserve for the third time in six months in a move to curb soaring U.S. fuel costs have pushed oil prices down nearly $5 a barrel in overnight trading.
— the first time in 12 years it breached three digits. Prices at the pump have risen in lockstep, soaring past an average $4 a gallon throughout most of the U.S.
Yet soaring prices have not spurred U.S. suppliers to produce more oil. Many oil and gas executives say they are reluctant to boost production even at today's elevated prices, according to a recent Asked what level the price of West Texas Intermediate oil would need to hit to get publicly traded oil and gas companies, 29% of executives said their expansion plans weren't dependent on price. Another 9% named a price above $120 a barrel.
Mr. Biden has seen his popularity sink as inflation reached a 40-year high in February and the cost of petroleum and gasoline climbed after Russia invaded Ukraine. "Fuel prices are of paramount importance to the Biden administration and congressional democrats heading into the November elections," Height Securities analyst Benjamin Salisbury said in a report."Consumers/voters are disproportionately sensitive to fuel prices, but there are few tools for policymakers to meaningfully reduce prices in the short term. A six-month release would extend to the November elections.
The price of crude is the biggest factor affecting gas prices. A $10 change in the price of a barrel of oil raises the price of a gallon of gas by 25 cents, the Federal Reserve Bank of St. Louis has
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